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

To: TobagoJack who wrote (90114)	1/4/2008 6:56:59 PM
From: GST	Read Replies (1) \| Respond to of 110194

Deflation is a persistent increase in the purchasing power of a currency -- or said the other way around, it is a persistent decline in general price levels. When a country has its economy go to hell -- as so many do -- it is almost always with an inflationary hurrah and a debased currency! That is the path we are on - we are indeed on our way at least to a neighborhood of hell. Argentina is an extreme case -- I don't expect to see 5000% annual inflation in the USA. But if you think that the US dollar in you pocket is going to start a long and steady multi-year rise in its general purchasing power then you are really engaging in wishful thinking. If you are worried that the dollar in your pocket is on the road to buying less and less each year, you are at least worried about the right thing. An Argentinian who held onto his currency during the hyperinflation would have starved to death as the economy collapsed.