Report The Gilts Thread in House prices and the economy Posted June 2, 2009 deflation is occuring big time.my view hasnt really changed....inflation is the usual end to deflation, so to deny inflation when observing deflation just seems nuts. but, all I am pointing out, is that in the battle to fight deflation, which is seen as an evil, THEY may resort to printing.... printing will of course work a bit, but as the underlying assets have a value not related to money, then the printing cannot change the situation in reality. what happens is a shuffeling around of paper, and it might appear that it is working, but IT cannot, but THEY see it working a bit apparently, so they see that working a bit can be enhanced obviously by printing more,,,rinse and repeat to mass cholera... I would rather we go through another boom bust cycle rather than just bust to oblivion. That was always and ever the case, wasn't it? At least, that was why I have always considered inflation to be the inevitable outcome. Governments will ALWAYS opt for expediency and rarely, if ever, for what is right and required.