I think inflations day has come and gone. That’s why so many people have a hard time understanding and accepting deflation. Deflation’s something they’ve never really experienced as fiat currency countries have forced an inflationary world on us. But we’ve had huge inflation since 2002. Mostly in the form of incredible credit/debt growth. Which is now imploding. And this is causing deflation. $30T lost in the markets this year, $3T in housing valuation, credit card defaults soaring and now unemployment gaining as well. There’s no where for the consumer to turn for access to funds and wages have downward pressure. But real wages have not been rising for many years. This is the end game to a consumer driven economy. The US is now at a point where it has to add value and produce something that is valuable to others.
I think we’ll be in a deflationary mode for some time to come. Look at all that’s been lost and the easy credit that’s gone. And will probably not be coming back for some time.
