RSAAKS

Government's Panicked Response to This Economic Crisis

It is obvious from response to my comments that a number of you folks believe we are stuck in deflation. For last 6 months or a year, yes perhaps we have been, but from a somewhat longer term-say over last 5 years, I doubt anyone can make the deflation case-and the same, in my view will be true for next 5 years-not deflation-I think we will see REAL inflation in most assets. It is possible that one or another commodity may not bounce as much, or gold may even drop, but the prices paid by real people for virtually everything will be, and have been HIGHER. Wages may not keep up with that inflation, and even production and demand may go down somewhat, but not the prices. And yes, cash may be king for a few more months, but I doubt that cash will buy more food or more energy or more healthcare or any thing people need. I will believe in the deflation momemtum when gasoline regularly begins selling for 99c, and my utility company send me a letter saying that my new rates will be cut 20% effective....