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October 01, 2008

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Nortius Maximus

Apologies for the jump to here, but the post this excerpt of yours is from didn't seem to have a comments option. You write

"One other angle to consider: Since extensions of credit are de facto expansions of the money supply, we.... could [get] a notable deflationary monetary effect."

I was thinking the same thing. And I wonder if the plummeting spot price of oil might in some way parallel or contribute to that, too. Hard cash on the barrelhead so to speak. As commercial paper stays gunked up, we also might be seeing a Gutman Moment: "Yhessss, but thiss is REAL COIN OF THE REALM. With one of theeesse you can buy TEN of TALK."

Credit drying up in spots might make cash payments more valuable there, right?

Here's another piece: as disposable income spending tightens up, with the other deflation happening, could that demand reduction also mean big cuts on prices for consumer electronics or even new cars?

Figuratively: people hawking ASUS EEEs at newsstands or college kiosks, just down the block from "Apple Annie"?

4 Gig DDR2 memory for $5?

Or am I just confused?

Nortius Maximus

I've made this topic a top post over at Winds of Change. Thanks for the motivation / inspiration.

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