good article – the concept of the inverted pyramid is, IMO, part of a foundation for intelligent investing in good times and bad[/quote]
So in the end, both the deflationists and inflationists will be proven right in a pragmatic sense, but I think we have to go through further deflationary pain before the step of a one-time rapid currency debasement occurs. Now this debasement could occur intentionally by government decree or via capital flight from the United States and either is possible. One of the reasons this is predictable in my opinion is because every wave of deflation is followed by more and more intense fiscal stimulus that is less and less able to be supported by underlying economic reality. In the end, something’s gotta give.
