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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: I_C_Deadpeople who wrote (90097)	1/4/2008 4:09:23 PM
From: GST	Respond to of 110194

There has never been a period of deflation in the US to the best of my knowledge since we went off the gold standard.

To: I_C_Deadpeople who wrote (90097)	1/4/2008 5:52:55 PM
From: bart13	Respond to of 110194

If you define deflation as CPI below zero, then we had it during the late 1860s through the late 1870s (excluding 1873), 1883-1885, and then again from 1893-1896 or so.

To: I_C_Deadpeople who wrote (90097)	1/4/2008 8:32:02 PM
From: Tommaso	Read Replies (1) \| Respond to of 110194

During the Civil War there was a large issue of non-gold-backed currency known as "greenbacks." Over the forty years or so following the Civil War, the greenback issue was gradually retired and replaced with gold backed currency. During that period there was general deflation as the currency increased in value. The falling prices that resulted did not prevent a great increase in prosperity during that time. Episodes of deflation recurred up to the Great Depression. Since that ended and since --especially-- international gold payments were suspended by Nixon, there has been nothing but inflation. The idea that deflation can occur in our contemporary United States is perfectly insane. All sorts of habits and institutions would have to be changed over night to make that possible. I would say that deflation is about as likely as slavery.