Watch Out! Those With Debts Will Go Broke in Coming Deflationary Depression – Here’s Why

We have had massive monetary creation for decades now which we have finally come to the day of reckoning. We do not know if the top will be next month, next year or even later but we certainly are getting to the top where we cannot buy our way out of the problem through a new stimulus injection… The truth is that a terrible, deflationary depression is probably starting in the coming months.

It is all about the amount of money and the prices for assets when there is less money. The American government has pumped several trillion dollars into the economy in the last two years. However, the value of real estate has gone down many trillions more, in both commercial and residential real estate. The value of stocks has still declined many trillions from the October 2007 high, even taking into account the substantial recovery since March 2009. In short, there is a lot less money going around today than there was in October 2007, even when you add back in the trillions put back into the economy by the U.S. government. (more)