http://www.marketforceanalysis.com/index_assets/The Y2K plus 8 Deflation Hoax.pdf It was written about 4 days ago (aug 13,2009) Its 8 pages but a really good read. Inflation will be upon us someday soon. Be prepared.
Change, nickel - surely a joke there somewhere. Pretty lame article. Author starts out with a misrepresentation of Y2K. There were a lot of problems "we" (everybody in the industry) fixed before hand, yet we still missed a few. Not many though. Then the author goes on to say that the fed creates a trillion in money and uses it to buy government debt so it's not inflationary because the money is sitting in an account someplace. It is inflationary since the government already spent the #@*& out of that debt and the new money created replaces other money that would have been borrowed had that new money not been created. I'm not going to claim that inflation is not going to happen. It's pretty likely, IMO. But this article does not provide much insight into why.
If you took an economic climate ripe with inflationary fruits, and merged it with an economic climate that was equally as deflationary (due to different circumstances), what would you get? Inflation= 5 Deflation= -5 5+(-5)=0 Kick that scenario, b/c it's happening right now. Credit has to get back on track before we're inflationary, period.
This article is utter nonsense... The bit about Japan is a joke. Japan was and is still in deflation. The fact that it's an "expensive" country has nothing to do with the rate at which prices are rising or falling. Moreover, what sort of a measure of inflation is "expensive"? Did the guy price a basket of goods in Japan vs other countries? What a load of bollox...
We have yet to complete the deflationary collapse we are in. Right now Hope is still keeping prices up. The forces for a deflationary collapse to continue are much greater than inflation at this point because of DEBT, and no matter what the government thinks they can do.. the bottom line, no matter how much money you print there is no way out of a debt collapse without bring the bad debt to curb, in the trash bin not the recycle bin. Bank collapse are still happening and working there way up the food chain as Colonial has shown. With all the money printing done, its like a few drops in a well called Debt. So Inflation, hyper inflation, not a problem right now. Your salary going from 50,000 to 15,000 thats a problem.