Mortgage Madness Will End In Inflation, Inflation, Inflation

[Krackersdave]

I agree, there is going to be a re-inflation again when they cut rates, but I don't the next bubble will be property. I think the next bubble will be in precious metals, food, and energy.

Are you a gold bug Pluto? I've been sniffing around BullionVault for a while wondering whether to dip in me toe for a few grand to try out the process.

Are you going to keep physical under the bed or go down the same vaulted route?

[Guest Bart of Darkness]

Are you a gold bug Pluto?

Is the Pope Catholic?

[silver surfer]

I've heard a few comments that this will end in Deflation - not Inflation.

Can someone please explain this? Personally I'd prefer Deflation as I hold cash - but I don't get the mechanics that would drive it.

Cheers!

It means a sustained recession causing a gap between the world's actual output and the world's potential output. So more and more goods and services are chasing less and less money. Not surprisingly prices go down, then go down further, and then go down some more. The last time this happened (the great depression of the 30's), it took the shock of the second world war, with massive and sustained government spending on the war effort, to pull the world's economy out of the deflationary spiral.

Personally I don't see this happening. China alone will be an engine of growth for at least the next twenty years, add in the end of cheap and plentiful oil and I think inflation will be the more likely outcome .

[Krackersdave]

Is the Pope Catholic?

Dunno - but I DO know he was a Hitler Youth member....