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


To: Pogeu Mahone who wrote (20950)6/23/2009 4:12:32 PM
From: GST  Read Replies (1) | Respond to of 71456
 
dis·in·fla·tion (dis'in-fla'sh?n)
n. Downward movement of inflated prices to a more normal level.

The bursting of a bubble that brings prices down to long term trends is not deflation -- it is dis-inflation. If you tell me that housing prices are lower in Australia than they were twenty years ago, and if housing prices reflect overall price decreases broadly speaking in Australia over that period of time, then you would have made the case for deflation. Deflation is not short term price movements -- it is the longer term trend -- and that has been a one way street for decades.