The current debt and asset deflation will not lead to a Japanese 1990’s style deflationary period. It is more likely to lead to hyperinflation in the US, the UK and many other countries.
Hyperinflation
Most people find it very hard to fathom that the current asset deflation is a necessary precursor to hyperinflation. The consequences of the credit and housing bubbles of the last few years have been a financial system which is leveraged to the hilt and with a foundation of quicksand. In order to prop up a sinking financial system just the US government has printed or committed to over $13 trillion and other governments have committed equally substantial amounts. [Read More …]
You only need a single free email subscription to receive our Newsletter and GoldSwitzerland’s Commentary.
When you are already a subscriber via the GoldSwitzerland.com website you do not need to subscribe here and vice versa or have both subscriptions for the quickest notification possible.
GoldSwitzerland
INFLATION DEFLATION AND GOLD
Monday, August 3rd, 2009The current debt and asset deflation will not lead to a Japanese 1990’s style deflationary period. It is more likely to lead to hyperinflation in the US, the UK and many other countries.
Hyperinflation
Most people find it very hard to fathom that the current asset deflation is a necessary precursor to hyperinflation. The consequences of the credit and housing bubbles of the last few years have been a financial system which is leveraged to the hilt and with a foundation of quicksand. In order to prop up a sinking financial system just the US government has printed or committed to over $13 trillion and other governments have committed equally substantial amounts.
[Read More …]
Tags: inflation
Posted in COMMENTARY SECTION | Comments Off