Thursday, September 11, 2008
If USD stays strong -> deflation, if USD drops again -> inflation
Maybe this article over-simplifies things but it seems to make good sense, especially the last few paragraphs. Sorry if you find it off topic. I find the deflation/inflation discussion important to how I try maintain my savings before buying a house in a few years time. "Therefore, anyone with a one-way bet on deflation could be wiped out if we experience one or two highly-inflationary periods along the way."