Randy_H

Invest Now with a Keen Eye and Be Regarded a Genius for Decades

By the time this "temporary deflation" (as the goldbugs, fiat money haters, and conspiracy nuts insist upon calling it) is over, the pursuant inflation will be backfilling growth more than filling wheelbarrows.

So few people seem to understand how much money is being destroyed it's little wonder the comments run 20:1 on SA in favor of the inflationary holocaust scenario. Remember, every time US consumer debt falls -- as in people paying down their credit card debts -- that equates to a dramatic rise in US savings rates. The Fed can print all the money they want, so long as the velocity continues to decline there will be deflation. Deflation causes destruction of demand and supply; negative growth. By the end, inflation isn't inflation because it ends up being expansion concordant with growth.