Posted: Sep 11, 2013 3:56 pm
stevecook172001 wrote:His predictions are bollocks because they take no account of how asset prices can be held up (at least in nominal terms) with money printing (or its electronic equivalent), which is not an economic phenomenon obeying some kind of underlying economic "laws"; it is a politicial one and so is far less predictable, or is entirely predictable depending on who is wielding power.
Money printing is why the market has not dropped by 60% already. Thus, we are far more likey to experience an inflationary bust than we are to experience a deflationary collapse.
Asset pricing isn't the only variable, however.
The econmy suffered a major contraction in 2008 without there being an inflationary push or big time deflation. The threat of excessive debt can drive a collapse.