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

To: mishedlo who wrote (77826)	4/17/2008 3:18:52 AM
From: Chispas	Respond to of 116555

One of my sons told me yesterday, "Dad, my company is losing a contract for an engineering/construction job in Minnesota, that I worked on last year, and for some strange reason I'm being blamed for loss of the contract....After 22 years I think I'm going to be laid off. Can this really be happening?" "Yes"

To: mishedlo who wrote (77826)	4/17/2008 1:07:48 PM
From: benwood	Read Replies (1) \| Respond to of 116555

I agree that deflationary head winds will become stronger. Eventually in spite of Bernanke's money drop threats, the dislocations will be too severe to ignore at some point (e.g. collapsing dollar, rapidly rising retail inflation, skyrocketing inflation in the things we need, useless retail deflation in the things we don't need) and at that point, there could be a period of real monetary deflation as defined by the Austrian economists. I don't think hiding in US cash will be king this time because we are moving from the dog body to the dog tail on the world economic stage and will instead be whipsawed to a greater and greater degree so long as we pursue insane economic and political agendas. Chances are that at the onset of the Great Adjustment, there will be many fire sales that create the illusion that prices will come down. But then the surplus will evaporate, manufacturing will be curtailed, currencies will be unpegged, dollars will be barfed up around the world, and voila, there will be a new, lower standard of living for most of Americans to go with the much higher unemployment.