John Evans

More Fodder for Inflation / Deflation Debate: Higher Gasoline Prices

The price of gas is rising only and solely due to collusion. The world is and has been producing more oil than we need for years. How can the price rise we seen be predicated on anything but collusion? Why collude you ask? To protect Socialist Europe, with its very stringent price and wage controls, from a very ruinous deflationary spiral.

Why I See Long-Term Deflation

To Mr Daniel B.

Thank my freind. I use my real name and you? Yes I know you. What do we have , millions against one and themillions will be crushed? Yes I think so. Tell all your freinds I said, "hi" and happy Hanukkah.

Why I See Long-Term Deflation

Thank you all for the lucid, intelligent and well considered comments. I learned something from every single one.

To respond to the majority of inflation-ites I can say 2 things.

First: this is basically an argument of time. I noted that. Inflation will certainly return, it is only a matter of time. The question is "how long?". Will inflation return in the short term, 3-6 months or the very long term of 2 to 10 years, or something in between? I say the longer term.

The second is that more persuasive of the inflation-ites seem to be relying almost solely on the increase in the money supply as the basis for a shorter term wait for the return of inflation. To respond, the housing slump is going on 2 years with a full 6-9 months of it under the aegis of the bailout mentality. Why? Because demand is falling and so prices are falling and so people are waiting to see the bottom. If this occurs across the board, for whatever reason and I believe it will, then demand will continue downward and so prices will necessarily follow.

We will see what we will see and that reality is the bottom line.

PS: To the deflation-ites, I never imagined so many demand siders existed. I previously believed I was alone in a world of supply siders.

Inflation Is in Our Future...Not Deflation

This is plausible if the money supply increase can get into the hands of the people who actually spend it. I don't see that happening. The key is credit from banks lending. In my opinion, the average American is both financially and psychologically unable/unwilling to go on another "debt-fest". No debt, no increase in the useful/spendable money supply, no increase in demand, prices fall

I may be as wrong as anyone else but that is how I see things.