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Peter Schiff On Inflation-deflation Debate

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2/3 of way thru this web broadcast

http://www.europac.net/externalframeset.as...from=07-01-2009

says - yes deflation WILL occur - in terms of non-fiat currency (gold), but since US$ are going to be devalued, then in their terms inflation will occur

I like this way of looking at things. Quite similar to Dr Bubb's way of thinking about inflation and deflation with different bases (money, gold, houses, loaves of bread).

The sequence with a monetary base might be as follows :

- A year of disinflation

- A year or two of moderate deflation

- Two or three years of moderate inflation

- Three to five years of significant inflation with declines in the real prices of many assets (deflation in gold terms).

Many views expressed about inflation / deflation on this site are in mutually exclusive terms and based on the assumption that inflation / deflation is a discontinuous function over time.

As I have said before, angry markets tend to try to punish as many as people as possible. The sequence that I have described above (with the time horizons that I have mentioned) will probably hurt a lot of people. The element that some forget is that the period of moderate inflation could last long enough that many people will lose their homes well before they get the chance to pay off their mortgage by selling a pair of socks.

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Guest DissipatedYouthIsValuable
That could happen, Yes!

But I think it is hard to predict timing.

I prefer to plan for a continuing "Bipolar World" // See: "The Libran Strategy"

== == ==

(Here's a timely topic - should be worth a look !)

1246960964061985300.jpg

Link: "Deflation is Winning" Report:

Watch the 20-minute Video – FREE

Deflation is Winning. Are You?

Inflation vs. deflation? You're probably familiar with the widely publicized case for inflation; just tune in to the financial media to get the consensus view. We invite you to challenge the mainstream: Watch this special 20-minute video, and you'll learn why the consensus is so often wrong.

The mainstream media couldn't predict the biggest bear market in 100 years; how do you expect them to anticipate what will unfold next? Watch a revealing video from financial analyst and sought-after speaker Steven Hochberg, chief market analyst for world-renowned research and analysis firm Elliott Wave International.

Hochberg and his colleagues, including famed financial forecaster Robert Prechter, were among the first to predict the financial tsunami responsible for washing out millions of investors. Prechter and Hochberg identified the 2005 real estate top in real time. They anticipated the huge declines we've seen since in stocks, crude oil, metals and agricultural commodities. They even warned their subscribers about the "sharp and scary rebound that began in March 2009. But what many people don't know is, they also helped their subscribers survive and prosper during this volatile time.

http://www.elliottwave.com/a.asp?url=/club...

Tell us about the mechanics of the Elliott Wave system.

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Tell us about the mechanics of the Elliott Wave system.

it is the wave given to ET from his new human friend, as he leaves Earth with his flower.

Edited by Bloo Loo

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