The Bernanke Solution

Add a few 00's to the currency....

Buy the problem assets at the old prices....

Sit back and wait .....

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Does not something smell about this ?

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But again....what is the logic ?


Before....there was a $70 Trillion economy....

$30 Trillion evaporated in a short period of time....


Thus the economy has a $40 Trillion capability....
and certain deflation....

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The $30 Trillion is simply printed and put back....

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$30 Trillion may or may not have come back via the
economy's smartest earning it....

Versus the govt. just printing it....
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Money left to thin air....

And came back ....from thin air as well ?
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So the legal contracts are in disarray with regards to prices....

But the money is replaced ?

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So the government replaces the $30 Trillion and defeats
deflation....?

And what about inflation ?

One had $70 Trillion....

One had $40 Trillion....

One had $70 Trillion...Status quo...$100 Trillion ?

Prices dipped....came back....

Inflation to those who got used to the $40 Trillion economy....?

Back to the same....for those reliant on the $70 Trillion economy before....?

The Treasury puts in $30 Trillion ....and has to remove it as well ?

Or if the Fed does not remove the $30 Trillion....

Then the inflation reflects a $70 Trillion economy diluted
by $30 Trillion....

Thus a $30 Trillion number is assigned to certain inflation....

If $30 Trillion is not removed ?
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Thus the normal economy is $70 Trillion ?

Artificially inflated by the FED to a $100 Trillion economy ?
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And the winners are the previous losers ?

And the losers are the previous winners ?

By government mandate ?


From a capitalist country ?

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This not only smells....it stinks....
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