Inflation & Deflation

Reading time: 196 words, no time at all.

Hallelujah! Garth Turner in his latest blog The big D finally gets what I’ve been saying all along. Yes, you can have inflation and deflation at the same time.

I’ve said it before and I’ll say it again. The stuff you OWN (real estate, pension, savings, etc). goes DOWN in value (deflation) and the stuff you OWE (food, gas, taxes, etc.) goes UP in price (inflation.)

Yes, they can happen at the same time. They ARE both happening now and they will continue happening for a long time while our over-indebtedness slowly gets paid off as we desperately pretend it’s all gonna be ok during this great unwinding.

For the sordid details, click on Garth’s link above and don’t say I didn’t warn you.

Remember my mantra:
“You can’t spend your way to prosperity.
You can’t borrow your way out of debt.
And, you can’t pretend your way out of trouble.”

The damn fools are trying to do all three and as long as they keep trying, we’ll keep sinking deeper and deeper into what (someday) they’ll call the “Greater Depression” and which will end in World War III.

Stay tuned.

November 1, 2012
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About gerold

I have a bit of financial experience having invested in stocks in the 1960s & 70s, commodities in the 80s & commercial real estate in the 90s (I sold in 2005.) I'm back in stocks. I am appalled at our rapidly deteriorating global condition so I've written articles for family, friends & colleagues since 2007; warning them and doing my best to explain what's happening, what we can expect in the future and what you can do to prepare and mitigate the worst of the economic, social, political and nuclear fallout. As a public service in 2010 I decided to create a blog accessible to a larger number of people because I believe that knowledge not shared is wasted.
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