Robert Nabloid

No Silver Lining for Precious Metal Bugs

"... we are clearly experiencing worldwide deflation. "

Deflation? Really? Where? Name one area that is "Deflating" that hasn't undergone massive "Inflating" first. Every area you tell me is in danger of deflation has already been inflated dramatically in the past.

I go the store. Food is up. I go to pay rent. Rent is up. I go to pay utitlities. They are up. I go to pay the doctor. His rate is up. I go to pay the dentist. His rate is up. I go to pay the lawyer. His rate is up. I go to the mechanic. His rate is up. I have a cellphone. The rate is up. I have cable TV/internet. The rate is up. I go to a restaurant. The menu prices are up. Everywhere I go, everything I do, the prices are higher, not lower. WIth the exception of gas. It's now back to where it was not that long ago. Woopty.

The only things that are under potential "deflationary" threats are the assets (like a home, stock prices, etc) that have been BID up and up and up by people that had access to extraodinary levels of debt. Now the debt is drying up and people can't bid as extravagantly on a home. Why should a home that was $100,000 now be worth $700,000? It's still the same home!!!! So what if it deflates back to $500,00? It's still dramatically inflated from where it originally was. Now the Fed is putting $7.7 T into the system anyways, which makes sure deflation won't be a problem. Inflation will be the problem, watch.

In the last hundred years... all we got was massive inflation. Once in a while we get a TINY amount of deflation - a pittance compared to the inflation we already went through... and yet you scream deflation? You worry we will have deflation? For what my parents paid $0.05, we now pay over $2. If it went back down to $1.90, or $1, is that "the problem"? Why did it go up to begin with? ANything to do with teh USD being a poor store of value? In terms of storing wealth (not creating it, just storing it), I'd choose metals anyday of the week over USD's. If I want to create wealth then I'd invest. I consider buying gold/silver a STORE of wealth, and nothing more, but it sure stores wealth better than dollars. You can't deny that. We know the track record.