[Quinny]

When I first became aware of politics and 'the economy' we had the 74 UK problems. Inflation was high, and wage policy was imposed.

but....

My (very poor) working class family got ' better ' wage increases under 'wage restraint' and when wages were 'capped' than when there was no wage control.

Us at the bottom might benefit from crisis!

[BigTex]

I don't think it's either/or. It will be BOTH. Just don't get headfaked by the whole process.

TIPS in a tax deferred account look like a pretty good bet right now. They're way down on deflation expectations (I mean like 15% or so--check out the ETF TIP), but they will do well when the inflation story kicks in--there should be good dividends and capital gains to be had.

I think that these liquidity injections are going to act like a laxative for a badly constipated person. No action for a while...but then it's gonna get real ugly.

[ColossalContrarian]

$this->bbcode_second_pass_quote('sittinguy', 'A')LRITE, I will reluctently, admit this looks like deflation. But just wait, me and all the other inflation believers will get our day in the sun. After you deflationist are done laughing it up you better go out and get some sun screen.
Oil will probably come back up soon. We all know they will slow supply to get the higher price, it just takes time to feel it.
I was VERY confused with gold and silver today.. And sad, I want to see gold and silver go up,, UP

[shady28]

I think Tex is saying it right. IF they continue to print money, it will END in hyperinflation.

However, they haven't printed enough for that yet. In fact, what they've mostly done is created more DEBT, which will wind up making a deflationary spiral even worse.

Ultimately they will probably mess up and print money. Maybe.

Kondratieff says that's about 2-3 years from now. The deflation has to run its course first. I think you'll see $250 gold and $40 oil well before that happens.

[smallpoxgirl]

$this->bbcode_second_pass_quote('sittinguy', 'I') was VERY confused with gold and silver today.. And sad, I want to see gold and silver go up,, UP

[PenultimateManStanding]

The Big Argument was whether we would see hyperinflation or Depression Era Deflation. It isn't over yet, but the deflation scenario seems to be what's happening. Except for gold, the price of everything seems to be falling. Wanna buy a car? Wait a little while and the price will be down a few more grand. Food prices are bound to follow the trend. Wanna buy a big screen TV? wait a while and the price will be way down. Wanna buy a new couch, a new bed, new clothes, a new cell phone, a new whatever? Wait a little while and Save! Save! Save!

[Bas]

that is if wages and entitlements don't go down faster, not to mention employment....

[evilgenius]

I don't think gold is exempt either.

[miles392]

Well isn't the concensus short term deflationary and longterm infationary? And ofcourse to complicate it further you can have both at the same time.

[3aidlillahi]

Right. And we don't have a government that will print away its problems, right? (Or at least try to). Keep deceiving yourself. But if you'd like to sell me your silver and gold at these "inflated" prices that are sure to go down, PM me. I'd be happy to pay $10 for Silver.

[Denny]

If anybody thinks its smart to sell off their hard assets, like oil, gold or silver, to swap them for the imaginary bits of value called "dollars" or "yen" or "rubles", well, just one question for you. Are we likely to see the available volume of all these multiply or shrink in the future?

The answer to that one question will tell you what you need to consider to evlauate whether we'll see deflation or inflation.

[PenultimateManStanding]

$this->bbcode_second_pass_quote('3aidlillahi', 'R')ight. And we don't have a government that will print away its problems, right? (Or at least try to). Keep deceiving yourself. But if you'd like to sell me your silver and gold at these "inflated" prices that are sure to go down, PM me. I'd be happy to pay $10 for Silver.

[3aidlillahi]

$this->bbcode_second_pass_quote('PenultimateManStanding', '')$this->bbcode_second_pass_quote('3aidlillahi', 'R')ight. And we don't have a government that will print away its problems, right? (Or at least try to). Keep deceiving yourself. But if you'd like to sell me your silver and gold at these "inflated" prices that are sure to go down, PM me. I'd be happy to pay $10 for Silver.

[PenultimateManStanding]

$this->bbcode_second_pass_quote('3aidlillahi', ' ')

Are you pulling a McCain on us and going senile?

[eastbay]

US Money supply doubles about every 10 years.

Maybe even faster now if recent FED/ federal action continues. In this environment, deflation is impossible.

We are now setting a stage for wild inflation.

[PenultimateManStanding]

$this->bbcode_second_pass_quote('eastbay', '.')
We are now setting a stage for wild inflation.

[eastbay]

$this->bbcode_second_pass_quote('PenultimateManStanding', 'S')o why isn't oil at $200/bbl?

[HEADER_RACK]

$this->bbcode_second_pass_quote('eastbay', 'U')S Money supply doubles about every 10 years. Maybe even faster now if recent FED/ federal action continues. In this environment, deflation is impossible. We are now setting a stage for wild inflation.

[3aidlillahi]

$this->bbcode_second_pass_quote('PenultimateManStanding', 'y')ou checked the price of copper lately? or oil? Sure, it's a weird situation and the guys in charge are trying desperately to prevent a 30's era deflationary scenario. But what happens to all those funds that they make available to the banks? It all goes into the vaults because they are insolvent, broke, busted.