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In 1927 the stock market was rising crazily because people thought nearly any investment would make money, and there was a steady increase in the money supply. This resulted in a huge inflation, followed by the Depression of 1929 to 1933. This was not the first time for the world. Whenever governments could not pay their bills, they created a "Qualitative Easing" (i.e. Run the printing presses to increase the money supply and thereby inflate the cost of purchases, savings and investments)
This is also the way governments reduce the spendable value of their debt and avoid going bankrupt.
Now Ben Bernanke, head of the Federal Reserve BANK, who may never have read a history book, thinks it is a good idea and may deceive people into believing the Obama administration has the economy under control without raising taxes. If history repeats, this should be followed by another Depression, like 1929.
Do you agree, and if so, what should the investors and savers do before it is too late?
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