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Deflationist Bites The Dust

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There is going to be inflation in the near term, but not for the reasons that he states. From that article he does not seem to have clear reasons for his view. Deflation is coming but not yet.

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I admit to being a deflationista.

I have bitten the dust and am in the process of spitting out a large amount of sand at the moment.

I have not yet given up on my main investment themes :

- The world is deleveraging

- Asset prices are not aligned with value

- Most people to-day cannot afford to buy their assets in a credit constrained world at currently inflated prices

Patenice will be required but asset prices are way too high to be supported by current economic circumstances. Being wrong in the short term is not great.

I hope that I am right in the longer term because I am tired of spitting out sand.

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I admit to being a deflationista.

I have bitten the dust and am in the process of spitting out a large amount of sand at the moment.

I have not yet given up on my main investment themes :

- The world is deleveraging

- Asset prices are not aligned with value

- Most people to-day cannot afford to buy their assets in a credit constrained world at currently inflated prices

Patenice will be required but asset prices are way too high to be supported by current economic circumstances. Being wrong in the short term is not great.

I hope that I am right in the longer term because I am tired of spitting out sand.

To be right in the long term, the best way is to keep being right in the short term... there is an exit from every trade. We're not deleveraging, no one currently in debt has the ability to pay it back so the money will stay out there in the system.

The only way to get serious deflation will be if people start to worry about the stability of the banks, or Government debt but in that scenario do you really want to be asset-poor, cash-rich?

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To be right in the long term, the best way is to keep being right in the short term... there is an exit from every trade. We're not deleveraging, no one currently in debt has the ability to pay it back so the money will stay out there in the system.

The only way to get serious deflation will be if people start to worry about the stability of the banks, or Government debt but in that scenario do you really want to be asset-poor, cash-rich?

and theres me reading UK debt is down ( consumers) and the same in the US.

Its only governments spending more...as the statesman en crout in charge has said the World must do.....

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