pitaking

Welcome to Parity

I'm glad to finally read someone who can see both sides of this issue. It seems like most "big names" are pounding the table on inflation being the next big bubble but a lot of what I see right now points to deflation. House prices continue to drop, savings rates are climbing for the first time in decades, we are driving less, receiving less credit and only shopping when prices are 50-70% off. The other chart that is worrisome is the free fall in money velocity. Dollars that changed hands constantly aren't moving any more. From banks to buyers to businesses, no one is spending or lending. While inflation will return, I think we are going into a 2-3 year period of deflation based on these signs.