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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: John Vosilla who wrote (24093)2/22/2005 1:54:11 PM
From: Tommaso  Read Replies (2) of 116555
 
The inflation in housing verges on hyperinflation, but won't continue much longer. There really has not been anything approaching hyperinflation in commodities. Very serious inflation seems under way, however. The traditional definition of hyperinflation is that it has reached the stage where people are frantic to spend money because of daily declines in the value of their money.

At least this is how I see it.

Mish is still looking for deflation. I just don't think serious deflation is likely with a fiat currency, though the Japanese have certainly done the best they could in that direction, and if Americans suddenly developed a Japanese unwillingness to spend on consumer goods, we could make ourselves have a deflation. For Americans, that would be somewhat like trying to commit suicide by holding their breath.
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