JWM. I have been following your deflation comments and those of Mish and my favorite piggington poster of all time – 4plexowner.
I can’t say it is quite sinking in. Sometimes I’m slow like that because I need to understand, in detail what you are saying before I have the “aha”. It hasn’t kicked in yet.
So, if you don’t mind, could you put some detail to this deflation thing, the theory behind it. The cause and effect.
I mean, I see the Feds cutting. I see the dollar dropping. It all says “devaluing dollar” = inflation, right?
Are you saying an upcoming deflationary period will be preceeded by an inflationary period, or will we drop right into it? Will the dollar devalue AND prices come down? Are you talking Gold? Oil? Stocks? Housing? Vegetables? Milk? Assets? Commodities? all deflating?
4plexowner mentioned some theory, but I can’t find the thread to read up on it.
