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

To: mishedlo who wrote (72388)	12/16/2007 12:14:39 PM
From: sea_biscuit	Read Replies (2) \| Respond to of 116555

I have seen some people mention the "deflation of everything we own (houses, stocks, bonds etc.) and inflation of everything we need (food, energy, health care, insurance etc.)" theory. Right now, we see that house prices are falling. Bonds (except for Treasuries) have collapsed - Treasuries are up because of the "safe haven" they supposedly are, and stocks are looking shaky. Also, food prices are higher, energy prices are higher, and health care and insurance premiums have risen. Can anybody disprove any of this?

To: mishedlo who wrote (72388)	12/16/2007 12:23:40 PM
From: sea_biscuit	Respond to of 116555

Commodities guru Jim Rogers says that there will be deflation - but not before a serious bout of inflation. ROGERS: We are the largest debtor nation in the history of the world. In fact, if you add up our foreign debts, they exceed the foreign debts of every debtor nation of the world put together. It is not that we are just a debtor nation, but we are a serious debtor nation. ... What will probably happen ... there will be serious inflation first as the Fed tries to drop its dollar bills out of helicopters. Ultimately there will be a collapse. That will lead to a deflationary collapse. It is not going to be deflation first; it is going to be inflation first, serious inflation.