Tag: Deflation
Inflation-Deflation Redux
Gary North has an interesting article on the deflation vs. inflation issue. He believes that we will end up in a deflationary Depression, although provides consideration for the possibility of a hyperinflation. In the short and intermediate term, which one of these occurs is critical for investors. Readers know that I expect the inflationary fires rather [...]
The Deflation-Inflation Alternate Routes to Depression
The coming economic collapse (Depression) is inevitable but the route taken to this ending is uncertain. The road has parallel routes: Deflationary Collapse Hyperinflationary Collapse Which route is taken depends upon government. In our highly regulated and manipulated economy, economics is important but generally takes a back seat to political considerations. As Axel Merk stated [...]
Turk vs. Prechter: Hyperinflation vs. Depression
James Turk believes hyperinflation is ahead. Bob Prechter believes massive deflation is coming. An interesting discussion between the two takes place in this audio. Ultimately, both lead to Depression. Only the route taken differs, but that is important. https://www.youtube.com/watch?v=aVm-aVA-kU8
Theft Via Counterfeiting
A heads-up for shoppers is provided by the Fiscal Times list of things that will get cheaper: 12 Things That Will Get Cheaper in 2012. Note that most of these items are electronics and made overseas. Innovation is the primary driver in the expected price decreases. Perhaps a surprising candidate is the price of wine. As [...]
Inflation or Deflation Before The Unavoidable Depression?
The argument persists as to whether our current economic crisis will end with massive inflation or in a deflationary spiral. Ultimately, either one results in a Depression. For investors, this argument is more than an academic one. It is the single most important variable for near and intermediate term investing success. It is also important [...]
Inflation vs. Deflation
David Rosenberg summarizes the tug of war between inflation and deflation: Pricing power improving • Air fares: +2.2% and have now posted 2%+ gains in each of the past three months (during which prices have soared at a 33% annual rate). • Delivery services: +6.8% MoM in January in the third best pricing month ever, [...]
Gold or Bonds?
Bill Bonner properly states: “Gold buyers expect the dollar to crash. Bond buyers expect it to hold up. It can’t do both.” Read his musings on what to do here.
Investing in a Dangerous World
I am in the camp of those expecting high inflation or hyperinflation. The operative word is “expecting.” Nothing in the future is certain. Many others are in the opposite camp believing that deflation is the more likely outcome. The near-term evidence has been more supportive of their position. So much time is spent on this [...]
More Inflation/Deflation Issues
This from BankImplode.com discussing the inflation-deflation debate. The conclusion, though not definitively stated, is that we are headed for inflation and likely hyperinflation. Readers know that this outcome is also my undesirable prediction. Can “Deflation” Catch a Falling Dollar? “Inflation is always and everywhere a monetary event,” so sayeth Milton Friedman. Following this intellectual tradition, [...]
Bernanke’s Pickle
What a pickle Fed Chairman Ben Bernanke is in! Mr. Bernanke is on record for unequivocally stating that he knows how to avoid a deflationary outcome. He cavalierly dismissed any possibility of that happening a few years back. He cited printing presses and helicopters as weapons to combat the evil dragon of deflation. Yet, after [...]






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