Deflation First, Then Inflation?

Welcome to the Precious Metals Bug Forums

Welcome to the PMBug forums - a watering hole for folks interested in gold, silver, precious metals, sound money, investing, market and economic news, central bank monetary policies, politics and more. You can visit the forum page to see the list of forum nodes (categories/rooms) for topics.

Please have a look around and if you like what you see, please consider registering an account and joining the discussions. When you register an account and log in, you may enjoy additional benefits including no ads, market data/charts, access to trade/barter with the community and much more. Registering an account is free - you have nothing to lose!

DoChenRollingBearing

Yellow Jacket
Messages
1,271
Reaction score
3
Points
0
Location
SE USA
...

Deflation followed by inflation is a theme I have read and heard about for a long time. But, now seems like we may be setting up a deflationary environment (using popular definition of "lower prices")...

Almost all bulk commodities (crude oil, gasoline, iron ore, steel (rebar), copper, corn, cotton, soybeans, etc., etc.) are down, esp. in 2014. 10-Year Treasury rates are down. The Baltic Dry Index is down.

So, there is a case for saying DEFLATION is or soon will be happening (gasoline prices at the pump ARE lower).

But, deflations usually don't last long...

"Deflation First, Then Inflation?"

http://goo.gl/NRArHa
 
The Fed already signalled concern about a strong dollar. They will open up the QE spigots soon I think. The big problem is that yield chasers have no where else to go.
 
It will be interesting to see what happens with the wheat prices, as although we are having record yields right now, the vomitoxin levels are too high in much of it for human consumption. I haven't heard if any of the corn is turning up with it. For now anyway.
 
Thomas Jefferson said:
"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered."


I've been wondering if the upcoming election has anyting to do with it too. High gas prices would get people more riled up to "throw the bums out". (and put identical ones in:flail:)
 
Of course, it's fairly logical. Deflation will degenerate in hyperinflation. Precious metal prices will shoot sky high then:

http://www.primevalues.org/investors-guide/hyperinflation-deflationary-crisis.htm

But first, I think we will go deeper and deeper into the deflation.
We are sinking.

Watch the dollar gain strength, the oil falling etc.

It will eventually stop falling.

Instead of crying like a baby of how much you lost when you bought gold and silver, make sure you buy a LOT more when prices sink lower.
 
Deflation for EVERYONE with income below 6 figures...does NOT exist.

The generalization of deflation; is a trap.

The world is flat as well... were you stand.

Just WHO is showing deflationary effects upon the lower 99%.

Gasoline is not signaling deflation, unless you are sitting in a pool of it,

trying to light your crack pipe.

Deflation will occur.

Currently it is most certainly NOT.
 
Back
Top Bottom