Misheldo:
I think you are hoping. I have heard this story for years now and believed it for quite a while. Bottom line is they will print money. Deflation is a virtually impossible endgame when consumers spend. Japan is completely different. They save. We don't. Also, difficult for them to inflate much more. Prices over there are already sky high relative to US - despite the exchange rate coming down.
The deflation scenario has been touted on this and other threads for 5+ years now. I don't think it will come to pass as long as the fed will continue to print money - unfortunately, I think the alternative which will be a currency worth far less then it is now is not necessarily a good one.
PS - I own a small business and would like to know what has gone down in price the last five years. Not my insurance, not my legal rates, not my accountant, not my raw materials. On a personal basis, not food, or taxes (on a relative basis), not energy, nor utilities, not real estate, not medical insurance, not college tuition etc. So I have a difficult time seeing deflation as likely. About the only area I see it is in communications and electronics - which is a small percentage of my monthly outlays anyway. If overcapacity is so rampant, why has the cost of business / living gone up so much ? If anything, I think it is the other way around. |
