Now what? Inflation or deflation?

[touchring]

Now what? Inflation or deflation?

[ThePythonicCow]

Re: Now what? Inflation or deflation?

Now what? Inflation or deflation?

When is now?

This day, this week, ... month, year, decade?

Inflation or deflation of what, and in what currency?

Prices that were largely driven by the great bubbles of the late are deflating. Prices that were still closer to their supply-demand equilibria are erratic or falling for expendable items, for now due to erratic or falling demand, and later on due to erratic supply in cases where lack of investment capital hurts supply. Prices are firming up for essentials such as gas.

This is not simply a rising tide that lifts all boats, nor a falling tide that lowers them.

It's a tsunamia in a typhoon. Some boats are up, some down, some beached, some capsized, and some completely broken apart. Few boats can expect to remain in the same place for long.

[BadJuju]

Re: Now what? Inflation or deflation?

I think we are in for a sustained period of deflation reminiscent of the great depression. Despite the best efforts of our most astute central bankers, we will not be able to overcome this mortal enemy of nations. ;)

No, my belief generally align with EJ in that we will experience a tumultuous period of stagflation.

[metalman]

Re: Now what? Inflation or deflation?

Now what? Inflation or deflation?

ask mish. he's the expert.