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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?


To: Knighty Tin who wrote (22608)2/1/2005 6:49:34 PM
From: Crimson Ghost  Read Replies (2) | Respond to of 116555
 
The idea that deflation is inevitable is a virtual religion with a few posters here.

My take is that we will see a lot more inflation BEFORE deflation takes hold, courtesy of your friendly CBs. Real estate may be ready to deflate, but I expect the CPI to move much higher a few years hence after a pause in late 2005/2006.

Deflation scares are like Iraq WMD -- a scare tactic to sell hugely inflationary CB policies.

We will not see sustained deflation or even disinflation IMHO until inflation has become so bad that the public sees it -- not unemployment --as the main problem.