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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (42198)	11/2/2008 7:20:56 PM
From: Elroy Jetson	2 Recommendations Respond to of 217869

I agree with your definitions . . . and what sort of crank would need a special word, disinflation, for "lower inflation" than a prior period. What is the corresponding word for "less deflation", disdeflation? indeflation? Perhaps we can choose one now and put it into widespread use. The point of Gold is that it's a store of value over time. Gold maintains it's value relative to other goods. I'm confident that Gold buys roughly the same suit of clothes or the same amount of wine or wheat flour today in London that it did in Roman Londinium in 200 BC. That's a valuable attribute in something that doesn't rot or rust, and is small in size relative to value. So I'm not surprised to see Gold remain worth the same amount of goods, as the price of all of these goods decline in U.S. Dollar value. The U.S. Dollar is merely a special type of "financial security" which may rise or fall in value relative to real goods. Currently the U.S. Dollar is rising in value as the amount of Dollars contracts, as debt is extinguished. Our recent experience of increasing U.S. Dollar debt faster than real income made the U.S. Dollar less valuable. Every time someone acquires a new U.S. Dollar loan to pay for an appreciated piece of real estate, their action depreciates the value of the U.S. Dollar. This is the real truth of inflation. People who claim otherwise just haven't thought it through. .