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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 387.88+1.2%Nov 28 4:00 PM EST

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To: TobagoJack who wrote (50936)6/5/2009 12:34:26 AM
From: elmatador  Read Replies (1) of 218117
 
Its a process. Not an event. Analysts scratching their heads on the debate of inflation/deflation fail to note the obvious.

Its a process. Not an event. We will have deflation, then we will have inflation.

How deflation bites and how it is perceived as biting.

Your money, in your pocket, does not move up and down.

Goods and services you need to purchase and cannot avoid or are used to buy since it is your life style, varies in price.

That means you might cough up more of that money to buy the same amount of such good. China knows that and would not want its goods to take more money (revaluing)from an American pocket.

China does not want its goods to increase in price beyond the reach of the shirtless mass market they are creating right now in Africa, LATAM, Eastern Europe etc. (Those need to forget Sony, Toshiba, Nokia, LG, Smasung, Motorola brands)

Once that interplay currency<=>price of goods (on a global scale) is understood we can move further agead to understand deflation/inflation.
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