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Politics : Welcome to Slider's Dugout

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To: SliderOnTheBlack who wrote (10438)7/1/2008 3:11:57 PM
From: jim_p  Read Replies (2) of 50177
 
"Print that one out and remember it... it's a keeper,
especially in regards to keeping an open mind on the
very "dynamic" ongoing inflation/deflation debate."

I’m in the inflation turning rapidly into deflation for the following reasons:

1. All time record oil prices act as a tax increase on the consumer and are deflationary.

2. Housing bubble is the largest housing bubble in history and the unwinding is deflationary.

3. Credit expansion was the highest since the 1920’s and the unwinding is deflationary.

4. Higher taxes are deflationary and are just about a given at this point.

5. The primary driver for money expansion has been credit expansion to ridiculous levels and now we will have the opposite for many years to come which will cause the money supply to contract.

Jim
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