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Hiding Bear

B4 The Bell Humpday August 11

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I would like confirmation on this little dittie which I have been preaching to the choir.

 

" If a country has gone through a period of disinflation for more than 15 years,consecutivly, there has NEVER been a time when that country has NOT experienced DEflation".

 

Those are my own words. Am I correct?

Please rephrase without the double-negative.

 

Also, is this a semantic/theoretical assertion, or a historical assertion?

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Guest Icky Twerp

THIS is preaching to the choir, here in Stooletown:

Mar. 14, 2004 - The United States is shouldering a greater debt burden today than it did during the Great Depression.

The total amount owed ? by consumers, businesses, governments and financial institutions ? totaled $34.4 trillion at the end of 2003, according to the Federal Reserve. The economy produced $11.3 trillion of output.

 

That makes the nation's debt triple its gross domestic product. In 1933, debt was about 2 1/2 times GDP, according to a study by the Gabelli Mathers mutual fund.

 

Then, the toxic mixture of investing with borrowed money, a stock market bubble and a shaky banking system proved too vulnerable to a sharp economic slowdown. Deflation rendered debt burdens unmanageable.

 

All those factors are not in place today. But the debt situation is unhealthy, experts agree.

 

Consumer debt has doubled in the last 10 years, to a record $9.4 trillion.

 

Corporate debt is at a record $5 trillion. Federal debt is $4 trillion but set to jump to $10 trillion by 2014. Financial institutions ($11.4 trillion) account for most of the rest of total debt.

 

This debt bubble comes with the lowest interest rates in four decades.

 

When rates inevitably rise, the burden will worsen

U.S. Debt Burden Is Higher Now than During Depression

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THIS is preaching to the choir, here in Stooletown:
Mar. 14, 2004 - The United States is shouldering a greater debt burden today than it did during the Great Depression.

The total amount owed ? by consumers, businesses, governments and financial institutions ? totaled $34.4 trillion at the end of 2003, according to the Federal Reserve. The economy produced $11.3 trillion of output.

 

That makes the nation's debt triple its gross domestic product. In 1933, debt was about 2 1/2 times GDP, according to a study by the Gabelli Mathers mutual fund.

 

Then, the toxic mixture of investing with borrowed money, a stock market bubble and a shaky banking system proved too vulnerable to a sharp economic slowdown. Deflation rendered debt burdens unmanageable.

 

All those factors are not in place today. But the debt situation is unhealthy, experts agree.

 

Consumer debt has doubled in the last 10 years, to a record $9.4 trillion.

 

Corporate debt is at a record $5 trillion. Federal debt is $4 trillion but set to jump to $10 trillion by 2014. Financial institutions ($11.4 trillion) account for most of the rest of total debt.

 

This debt bubble comes with the lowest interest rates in four decades.

 

When rates inevitably rise, the burden will worsen

U.S. Debt Burden Is Higher Now than During Depression

Excuse my stupidity please, but what does that mean financial institutions owe 11.4 trillion? I thought they were the ones doing the lending, not borrowing? That kind of puts a hole in my idea that banks would prefer 'deflation' as opposed to 'inflation' if that's true.

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The nikkei seems to be tracing out a bear flag on the weekly. Maybe even a head and shoulders. Looks like 10630 area breaks it do the downside while 11150 would break it to the upside at least temporarily.

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THIS is preaching to the choir, here in Stooletown:
Mar. 14, 2004 - The United States is shouldering a greater debt burden today than it did during the Great Depression.

The total amount owed ? by consumers, businesses, governments and financial institutions ? totaled $34.4 trillion at the end of 2003, according to the Federal Reserve. The economy produced $11.3 trillion of output.

 

That makes the nation's debt triple its gross domestic product. In 1933, debt was about 2 1/2 times GDP, according to a study by the Gabelli Mathers mutual fund.

 

Then, the toxic mixture of investing with borrowed money, a stock market bubble and a shaky banking system proved too vulnerable to a sharp economic slowdown. Deflation rendered debt burdens unmanageable.

 

All those factors are not in place today. But the debt situation is unhealthy, experts agree.

 

Consumer debt has doubled in the last 10 years, to a record $9.4 trillion.

 

Corporate debt is at a record $5 trillion. Federal debt is $4 trillion but set to jump to $10 trillion by 2014. Financial institutions ($11.4 trillion) account for most of the rest of total debt.

 

This debt bubble comes with the lowest interest rates in four decades.

 

When rates inevitably rise, the burden will worsen

U.S. Debt Burden Is Higher Now than During Depression

Excuse my stupidity please, but what does that mean financial institutions owe 11.4 trillion? I thought they were the ones doing the lending, not borrowing? That kind of puts a hole in my idea that banks would prefer 'deflation' as opposed to 'inflation' if that's true.

post-18-1091812862.jpg

 

Yes since the fed does not release any of the stats prior to 1950 it is sketchy but above is the best I've been able to construct...sorry it was a work in progress that I got sick of locking at...It is not off by much...

 

Since it is the end of the night I should be able to squeze this chart below in...

 

post-1-1087724599.gif

 

And just so you know how big a Trillion is the following...It will blackout a 19'' monitor...

 

post-18-1087724949.gif

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