[quote=Rustico]So Carenter, you are not on the deflationista train anymore?[/quote]
I’m both, an inflationist and a deflationist. 😉 Actually, I’ve long thought that stagflation would be our greatest threat, and it seems to be turning out that way, unfortunately.
Yes, I believe deflation is the primary (and VERY powerful) undercurrent, and the devaluation of our currency is the way they are trying to fight it. This is a horrible policy that will cause far more damage over the long run, than if they had just allowed deflation to cleanse the system of massive debt and excess, so we could rebuild again from a sustainable foundation. Unfortuantely, the asset owners (think wealthiest in the country) are the ones who call the shots and control our govt and monetary policy, so they will win this fight. The workers of the U.S. will take the brunt of the pain, while the wealthy are made whole at the workers’ expense (and they can protect themselves against inflation far better than most workers can).
