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Politics : American Presidential Politics and foreign affairs

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To: Peter Dierks who wrote (44289)7/24/2010 7:26:10 AM
From: DuckTapeSunroof  Read Replies (1) of 71588
 
Re: "We are not in a global inflationary cycle. I would assume that deflation is a greater risk than at any time in either of our lives."

Some --- (few) --- countries have appreciating currencies and rising price levels domestically ('inflation') right now. Among their ranks I see Brazil, China, India, probably a few more.

Most Western countries (Europe, the US, etc.) are facing the exact opposite problem as you point out: deflation.

I would venture to say that, (& mostly as a direct result of the Global economic crash and recessions thereby spawned...), MORE of the world is at risk from disinflation and deflation now then from inflation.

Re: "Gross mismanagement of the dollar may cause it to suffer inflation even as the global currencies experience deflation."

A little price inflation would be very welcome right now in the US... as an indication of a growing economy.

But, as far as the currency goes, the Dollar has been on a LONG and mostly slow and steady decline for *decades* now. I would expect exactly the same for the future.
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