forget deflation .. inflation set to soar .., page-98

Heremes,

I'm beginning to see the disconnect, here. Every economy is, in essence, not one, but two economies. You have the productive economy, and then you have the banking/real estate/passive investment economies.

The first creates real new wealth and a future growth path. The second leeches of the first.

If the is healthy, the second will also be healthy. However, the reverse is not necessarily true.

When the "leech" economy grows so big that it takes too much away from the "real" economy, it kills the real economy, just like the average parasite.

The difference between modern America and Japan is that the Japanese economy was actually vibrant and healthy, until the leech (banking and real estate) economy went crazy. Rather than kills those malignant growths, the Japanese government decided to keep them alive for over 20 years, by requiring the real economy to pay back 100% of their follies (plus interest).

America does not have that luxury. The result will be different, because the circumstances are different.