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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: GST who wrote (90094)1/4/2008 6:19:13 PM
From: John Vosilla  Read Replies (2) of 110194
 
Going forward it is highly unlikely there will ever be inflation in my lifetime. Deflation is a very, very rare event -- so rare that it is almost impossible to come up with meaningful examples of it. Inflation is not only the norm, it is the dominant mode for all industrialized countries active in the global economy -- it is extremely difficult to identify any examples of deflation anywhere in the world in the past 50 years -- Japan being an exception. The general and extremely persistent trend in price levels across all currencies and all countries has been and continues to be inflation. Present circumstances point towards a sharp upward rise of the rate of inflation. We have enjoyed moderate inflation in the last ten years or more -- but the trend has shifted in recent years and threatens to lead to much worse inflation.'

I agree..we are in such a different period today unlike anything I've ever experienced in my adult life...I was just too young to experience the stagflation of the 70's. Our deflationary moments were brief periods in the early 1990's and early 2000's.. A markdown and loss of even a trillion dollars from this credit crunch going to money heaven isn't deflationary. Look at the RTC when commercial RE nationwide fell 60-70%, look at the tech crash, look at the money we've blown in Iraq.. Really it is the broad money supply growth and the astounding percentage increases in basic commodities like copper, silver, oil and gold along with agriculture like wheat, corn ect.. that tell the story.. Anyone think there was a reason our government suddenly stopped publishing M3?
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