Moving beyond the inflation versus deflation debate

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investorzzo's picture
investorzzo
Status: Diamond Member (Offline)
Joined: Nov 7 2008
Posts: 1182
Moving beyond the inflation versus deflation debate

http://www.financialsense.com/fsu/editorials/2009/0914b.html

On my website, which is an active investor's chatboard called GlobalEdgeInvestors dotcom, we became obsessed.  Almost everyone joined in, trying to work out which of the two "-flations" was most likely.  Several argued the current downwards pressure on price would not last, and massive money printing by the Fed would eventually hit the economy, and must somehow morph into much higher inflation.  Some were listening to Marc Faber, who is "certain the US will experience hyperinflation" sometime in the future.  On the other side of the debate, we saw persuasive arguments from Bob Prechter and Mish Shedlock who believe we will soon be living with even worse deflationary pressures.  In this article, I explore the idea that there is another possibility.  We may live through a long period where we continue to see both forces in conflict, bringing continuing price swings.

britinbe's picture
britinbe
Status: Gold Member (Offline)
Joined: Dec 28 2008
Posts: 381
Re: Moving beyond the inflation versus deflation debate

Thanks investorzzo, it kinda validates some of my musing on this.

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