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Only A New Credit Bubble (That Isn’t Coming) Staves Off Deflation

November 16th, 2009 by The Market Oracle Filed under Featured, Feeds, Free Republic, Politics.[4 views]
Only A New Credit Bubble (That Isn’t Coming) Staves Off Deflation Economics / Liquidity Bubble Nov 16, 2009 - 09:03 AM By: Chris_Galakoutis The next issue I wanted to write about in this post is this whole notion of ballooning reserves at the Fed, and how we get to hyperinflation if this money were to ever be lent out and multiplied across the economy. Reserves might have gone from 10 Billion in August 2008, to about 1 Trillion today, but in fact, this money is not being lent out – it is simply sitting there at the Fed, earning interest....

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