Deflation on the Horizon…”Those who predicted inflation and those who predicted deflation will both get to be right. This will be an “equal-opportunity disaster.”

Tuesday, October 27, 2015
By Paul Martin

By Jeff Thomas
GoldSeek.com
Tuesday, 27 October 2015

For years, a rather pointless argument has been ongoing amongst economists – that of inflation vs. deflation.

The principle countries of the world have amassed a greater level of debt than the world has ever seen and, of course this can only end badly. But will it end in inflation or deflation? To me, this discussion is akin to arguing whether the sun will rise in the morning or set in the evening.

Those who predicted inflation and those who predicted deflation will both get to be right. This will be an “equal-opportunity disaster.”

Certainly, whenever there’s an increase in the currency in circulation, there will be inflation. Yet we don’t seem to be witnessing significant inflation. But, then, the massive quantitative easing that’s occurred hasn’t been widely circulated. It has, instead, been pumped into the banks, where most of it has stayed. Also, there has been inflation in the world in general, but less so in the US, as the US dollar is rising against most currencies. As a result of these factors, the traditional inflation before a crash has been limited.

The next major event in the row of dominoes is likely to be a crash in markets. Whilst it’s obvious to anyone who studies economics that the bond and stock markets are in a bubble of historical proportions, the majority of people (those who rely upon the media for their financial guidance) are vainly hoping that political leaders will come up with an economic aspirin of some sort that will make the debt problem go away, eliminating the possibility of market crashes.

But, now, we’re beginning to close in on the first crash. It’s within view and is finally giving pause even to the many who had maintained that it would somehow not come to pass. It’s beginning to look more real to the average person.

The bellwether has been a significant drop in the stock market. This drop does not constitute a crash, but nor is it an anomaly. It’s merely the first downward leg in the overall decline. There will be a correction to the upside, then another downward lurch, and so on. Decades from now, economics students will look back on The Greater Depression and their education will include a graph that begins in late 2015 – a jagged downward line than finally bottoms at or below 50% of the present level.

Plan on deflation following the crash.

The Rest…HERE

Leave a Reply

Join the revolution in 2018. Revolution Radio is 100% volunteer ran. Any contributions are greatly appreciated. God bless!

Follow us on Twitter