the nation\'s wealth do understand that fire(Smith)

Charles Hugh Smith at oftwominds: With top 1% owning 60% of all bonds, stocks and business assets, versus bottom 50% owning on 2.5% of nation's net worth:

"Thetop 1% do own fixed assets, of course, just like the rest of us, andthey are of course diversified around the globe. But their U.S. liquidassets would be rendered worthless by hyper-inflation. Why would theyallow that cycle to take hold?

Finally, consider theirposition in a deflationary environment. Things are looking quite cheeryfor the super-wealthy in a deflationary cycle. All their liquid assetsbuy more real assets every month. Yes, perhaps there are another 30-40million debt serfs struggling to make ends meet below them, but thepoor have always been present and it hasn't really affected theirwealth.

So which cycle serves the top 1%? The answer to thatquestion is not hyper-inflation. Therefore policies will not enable,support or allow a hyper-inflationary cycle to take hold. It might beargued the policymakers are playing with a fire they don't understand;but my entire point is those who hold the nation's wealth do understandthat fire, and they will never allow it to flare into a conflagrationwhich destroys much of their wealth."