hoover

The End of Gold, Part Two

Dave, good thought provoking article. It is quite obvious that deflationary forces are at work in various commodities, houses,and other items. But, if you visit the supermarket every couple of days like I do, you know there are also inflationary forces at work. I have always assumed that deflation can never occur because government prints enough fiat money, and financial institutions lend enough money, to prevent deflation. But, of course loans are imploding and at the same time businesses are laying off people (reducing their buying power) and cutting costs to the bone. Deflation could happen over a number of years -- but I will have to see it to believe it.