Your point on Japan

    The Deflation Scare

    Posted by ravun on 24th of Jun 2009 at 04:32 pm

    is valid, I myself have in the past highlighted that.

    The whole article is actually aimed at stagflation and neither inflation or deflation, I just highlighted bits for my arguement with Dodger...which has been going on behind the scenes. So USA beats Spain 2-0

    fwiw

    Posted by ravun on 24th of Jun 2009 at 04:36 pm

    "The third important point is that economic slowdowns usually trigger massive reflationary responses from the Fed that reignite inflation. Such was the response in 1958, then again in 1970 (not described here), in 1974, 1980, 2001, and currently in 2007-2008. Anytime the Fed has responded by massively reflating the economy, the typical result has been stagflation."

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