Deflation-Inflation argument heats up

[ST]

Re: Deflation-Inflation argument heats up

who can't understand why oil is $75 when physical oil demand is off 30% from 2001 when oil sold for $16.

metalman - can you point me to the data indicating physical oil demand off 30% today from 2001? Greatly appreciate it!

[ST]

Re: Deflation-Inflation argument heats up

Inflation arrived in 2008 and never left. It is less obvious in certain prices, such as gasoline, but otherwise look around you for Inflation in America - Part I: Five signs of inflation and more.

Gold is not rising in price. As we have warned for a decade, the dollar is losing purchasing power.

The deceptive thing is that gold is rising against all currencies, so purchasing power it seems is being lost even in countries which have 'strong' currencies like Canada. I was there recently and could not believe the cost of candy bars, for instance.

Demand from Asia for raw materials - the familiar slogan for commodities and commodities equities - real or illusory? comments?

[radon]

Re: Deflation-Inflation argument heats up

Deflation is what is happening. There is no argument.

The last thread on this topic had people claiming prices were rising. Even the AP can see this is not true:
http://apnews.myway.com/article/20091004/D9B4D6C01.html

Credit is contracting faster than the monetization that is occurring. "Disinflation" is disingenuous. We are experiencing the very definition of deflation.

Inflation way well be a serious threat in the future. It is not a threat now unless you believe that employment will come roaring back and everyone decides that paying the mortgage is a good investment.

It takes money supply AND DEBT people! Debt is money until it doesn't get repaid. Not paying the mortgage or the credit card permanently destroys a large amount of purchasing power. The Fed has been trying to simply fill this gap.

It is not worth trying to have a discussion with a gold bug as the shiny metal drives people crazy. I own gold and I own it for the same reason that most people do: disaster insurance. I could care less about inflation in regards to my gold holdings.

You can be right for the wrong reasons and iTulip's self congratulation on "winning" the inflation argument simply looks ludicrous to anyone paying attention. Expand your timeline a little and say it will happen later but claiming victory now makes me question the intellectual honesty of the sites writers.

If you are broadening your definition of money you might want to read Bart's post over here. It is most informative.

[Serge_Tomiko]

Re: Deflation-Inflation argument heats up

now what happens?

Clearly, the present democratic regime will be replaced. My only hope is that this is a peaceful process.