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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: skinowski who wrote (20782)	6/11/2009 12:17:32 AM
From: GST	1 Recommendation Respond to of 71463

It is quite a stretch to say we are or have been in a period of deflation. By its very definition, deflation implies more than a few short term dip in prices during a recession. We have had plenty of recessions in the last half century, and in those recessions we have had periods of short term price declines -- but nothing that could be called deflation. This past year we have had a spasm where many have speculated that deflation is taking hold -- but the evidence is not there to support it. We have had a huge dip in asset prices to be sure. Some asset markets were absurdly overbought and had to come down at come point. But this is not deflation any more than a short term downturn in a stock market is called a secular bear market. We are and have been for decades in a secular inflationary period. It is not about to flip into deflation -- on the contrary, it is about to get far worse.