jfred, I'm inclined to think that "cash" is the least stable thing. It's nothing but a whim of Big Ben with his helicopter and a bunch of politicians, enforced by their ignorant electorates, who are up to their necks in debt.
I remain in the "no deflation" camp, though there can always be 20% moves one year to the next. I am aware than Japan had a 90% decline in property values [thereabouts] after 1990.
I have no intention of betting that cash will beat other tools of life on Earth in the early 21st century.
Betting that a heroin addict will NOT try for another hit, or that an alcoholic won't have "just one", or that somebody giving up smokes, again, won't have just one, or that a debtor won't simply repudiate their debts or try to get another load of money to feed their spending habits, are not bets I think are likely to win.
When the money owners decide to do a bit more dilution, with concealment of the vast demands of booming global economies and productivity bonuses of cyberspace and the vast panopoly of technological development combined with economies of scale, they are sure to come back for more. They can even argue that they HAVE to print a bunch more to avoid deflation.
Prices dropping is apparently a bad thing, though most of us like a bargain - I'm happy to admit to that. I like prices dropping.
I continue to bet on inflation.
Mqurice |
