Intel Barter

Is deflation a problem? Yes, it is. But will that happen? No, it wont.

Lets take a step back and realize what is happening! Dollar is still the world reserve currency, and considering the current state of the credit market all over the world; the Dollar will remain as the reserve currency for sometime to come with the way we are going position ourselves for and in the future.

Since the credit markets are so contracted the net assets valued are below requirement levels for growth. Ergo making the fundamentals the primary drivers of the deflation, and where further deflation would worsen the situation more. Where the governments and the extended economic policies/regulations are stepping is in the technical aspect of this problem, where lies the only true solution.

By increasing the printing of money which is measured basically by the desired technical levels the net asset values; will slow and stop the economic contraction from the credit markets. Allowing the creditors to trade with a room to maneuver with technical appreciations.

Now there is the worry of inflation in the long run, but this will be offset by the markets naturally. Once the credit lines rise to healthy levels, it will start to take away the excess market liquidity. Once the market liquidity starts to decrease the credit lines will have filled without getting elongated with the proper control of the rates; creating a balance.

Now comes the final solution charge, which is to clean up fundamental support. This will have to be relied the new economic and financial innovations. Economic are changing and evolving, which will spawn new markets and working systems; there are enough aspects in markets control to deliver these new markets and systems on its own.

Keys to a stronger international economic participation is the a stronger establishment in domestic economic relationships and communication.