tshk1221

Evidence That Big Inflation Is Coming

I don't think we need these complicated charts and explanations to understand deflation and inflation. Deflation is the correct answer for the current situation due to the following chronogical reasoning.

1. Steep interest rate decrease (9/11 terror)
2. Historic collateral value inflation
3. Historic credit inflation (Money supply to market increased.)
4. Historic credit defaults
5. Historic credit deflation (Money supply to market decreases.)
6. Scarce dollars in the market (Dollars got stronger ever.)
8. Falling prices of goods (=> Mild deflation, We are here now.)
9. Further and further falling prices of goods (=> Hyperdeflation)
10. Prices of goods turning to negative (= Hyperinflation)

Mounting job losses and falling real estate price are the results of depleted money supply in the market.