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Politics : President Barack Obama -- Ignore unavailable to you. Want to Upgrade?


To: tejek who wrote (148118)1/11/2015 6:21:52 PM
From: RetiredNow  Read Replies (1) | Respond to of 149319
 
No one predicted oil falling through the floor. That's going to ensure we have deflation. All other major areas are experiencing serious inflation: rent, healthcare, food, and education. However, with the dollar now strengthening against all major currencies, that may ameliorate now, bringing those other areas down. So deflation is a higher probability.

So yes, when we are printing money, it's pretty obvious that leads to inflation in the major areas of people's budget, as it most clearly has in the last 5 years. But when we stop printing and allow the dollar to strengthen that means inflation will be muted and deflation becomes more of a concern. So when we were printing, I predicted (and we saw) inflation. Now that we are not printing, I predict (and I'm sure we'll get) low inflation.

Now, if they decide to hold off on rate increases beyond mid-2015 or institute QE4, then my stance will change. This is the problem with how you think. Your mind never changes, even when facts on the ground change. You should try being more fluid in your thinking. When facts change, your thinking must incorporate those new facts. Otherwise, your thinking is flawed.