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Gold/Mining/Energy : Gold & Gold Stock Analysis
GLD 368.80+0.2%4:00 PM EST

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To: GST who wrote (25079)8/3/2011 8:25:38 PM
From: JimisJim  Read Replies (3) of 29622
 
We had deflation during the 2008 financial collapse... if we have another collapse, I imagine we'll see deflation before inflation... took awhile after 2008 for inflation (the unofficial/unreported/stealthy type) got any traction mostly due to monetary expansion... if the velocity of money and/or money supply multiplier had returned to pre-2008 levels, we'd have seen runaway inflation... but instead, they were at virtual standstills and thus we saw deflation for a period before the massive easing planted inflationary seeds... still, we have not seen the high inflation that would normally accompany the easing we've been through with QEI and QEII, because all that new money hasn't been moving around very much like it used to...

Long term, inflation is the bias in modern economies and deflation scares the pants off central bankers.

I know... "it's different this time"

Jim
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