Lower rates in a credit contraction(smokey)

Lower rates in a credit contraction does not necessarily create monetary inflation.

Addto the credit contraction the asset deflation in real estate and thefinancial derivatives thereof and even zero interest rates will fail toinflate the system.

It's like trying to pump-up a tubeless tirewith a broken rim seal. Each pound of air you pump into the tire exitsinto the atmosphere.

In our own financial system, dollars arenow disappearing much faster than they are created. The inflation onthe prices of food and fuel which we are experiencing is due to pastmonetary inflation created by the international credit bubble and assetinflation in the financial casino.

To believe that futuremonetization by the Fed and the government will mimic past monetizationduring the "just think positive" credit bubble is a mental habit whichblinds one to new paradigm of hand-to-mouth survival.

Mentalhabits are hard to break. Most of the time Life's rapid changes breakthem for us... much to our dismay and disgruntlement.

Look at it this way:

Theinsane machinations by the financial system which has occurred in therecent past has never happened before. There are no hysterical...err... historical parallels in the past 6000 years of recorded history.

Thereforethe consequences of this senselessness cannot be predicted by asensible mind. Nor can the forthcoming funny business be foreseen by asober intellect.

Mickey has opened the flood gates and we now wait for the Sorcerer to return.