Deflation First, Then Inflation?

DoChenRollingBearing

Yellow Jacket
Supporter
Messages
1,275
Reaction score
0
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
 

pmbug

Your Host
Administrator
Messages
7,500
Reaction score
38
Points
203
Location
Texas
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.
 

11C1P

Yellow Jacket
Messages
1,006
Reaction score
10
Points
153
Location
North Dakota
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.
 

dontdeBasemebro

Moderator
Messages
494
Reaction score
0
Points
0
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:)
 

Potemkin

Predaceous Stink Bug
Messages
220
Reaction score
0
Points
0
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.
 

drAGonfly47

Predaceous Stink Bug
Messages
110
Reaction score
0
Points
0
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.
 
Top