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Gold/Mining/Energy : Gold & Gold Stock Analysis -- Ignore unavailable to you. Want to Upgrade?

To: No Mo Mo who wrote (15814)	10/26/2008 2:26:32 AM
From: GST	5 Recommendations Read Replies (2) \| Respond to of 29622

Dead wrong -- equities go up, equities go down. This happens all the time. This is NOT inflation and deflation. It is enough to drive a person crazy when people say that we are in a deflation because equities are down, or because we are in recession, or because housing prices are down. Deflation is a persistent downward trend in general price levels in the economy. If there was a downward trend in overall price level that was persistent to the point where it would be worthy of the label 'deflation' they we would have been experiencing downward price movements across the board for everything over the past couple of years at a minimum -- and clearly we have seen no such thing. Any talk of deflation at this point is pure speculation -- and it is speculation on something that is extremely rare and highly unlikely. Ask yourself this question -- do you expect that several years from now to find prices lower or higher in US dollars when you take into account the full range of things that you require to live? If you can honestly say that you expect lower prices three years from now, five years from now, ten years from now -- then you believe in deflation.