by cube » Sun 28 Sep 2008, 17:19:14
$this->bbcode_second_pass_quote('Leanan', '.')..
This is far from settled yet. The credit implosion is massively deflationary.
I disagree.
Here's an analogy.
Inflation = driving a car forward
deflation = slamming the brakes, shifting into reverse, and then driving backwards
At the height of the housing boom we were speeding on the freeways at 100 mph.
Now that banks are being much more "stingy" with who they loan money out to, we're doing 55mph.
Have we slowed down? --> yes
Is the car going in reverse? --> no
Therefore we're still in an inflationary environment.
//
IMHO society would have to pay off its debt at a faster rate then it is taking on new debt to be considered deflation and that is definitely
NOT happening.