The shooting match between inflation and deflation remains far from finished today. Which ‘flation will win - inflation and soaring prices…or deflation and a collapse in all things but cash? Richard Russell remarked way back in 2004 that a battle between inflation and deflation then lay ahead. Looks like they’re both re-arming today. Private investors fearing collateral damage might want to take cover. Gold bought near $800 an ounce might just provide some kind or armor.
August 22nd, 2008 | Adrian Ash | 1 comment | ContinuedAll Posts Tagged With: "deflation"
The Ghost of ’70s Inflation and the Ghost of ’30s Deflation Will Scare the Living Daylights Out of Us
So, for now, the Fed isn’t fighting inflation at all; it’s fighting another ghost from the past - deflation. You don’t lend money at less than half the level of consumer price inflation if you’re fighting inflation.
June 27th, 2008 | Bill Bonner | 7 comments | Continued
War Between Inflation and Deflation Leaves Millions of Casualties
Our theory is that the war between inflation and deflation leaves millions of casualties, but no clear winner - at least not for a while. Instead, prices for U.S. stocks, houses and labor are marked down…while commodities, oil, gold (and even some emerging markets) go up.
April 23rd, 2008 | Bill Bonner | 1 comment | Continued
Deflation Works on Yesterday’s Bubbles
We believe the Great Moderation is over. It has given way to a period of volatility…a period of Great Flation - of two sorts, both Inflation and Deflation, sometimes warring with each other…
April 18th, 2008 | Bill Bonner | 1 comment | Continued
Who Will Win the Financial War of the Worlds?
Our hypothesis is that the fed’s efforts to inflate will show up more in the gold market than in the stock market. That - and an instinct for self-preservation - is why we’re long gold and short stocks. Stock prices depend, ultimately, on earnings. Gold’s price depends, ultimately, on inflation.
March 13th, 2008 | Bill Bonner | 0 comments | Continued
Why the Dollar is Falling: Recession Gets Priority Over Inflation
The feds, you’ll recall, are far more interested in fighting recession than they are in fighting inflation. That’s why the dollar is falling… about which, more in a minute. But in the battle between the feds and deflation… it appears that the feds are getting their derrieres kicked.
March 3rd, 2008 | Bill Bonner | 0 comments | Continued
Reasons to Love and/or Hate Inflation
Everybody loved inflation when it pushed up their stocks and house prices. But they hate it when it boosts the cost of their bread and taxi fares. Only gold investors like consumer price inflation. Hence, the smart money is wagering that the price of gold will go up… and so is our money!
February 25th, 2008 | Bill Bonner | 0 comments | Continued
Caught in the Middle with Nowhere to Go: The Battle Between Inflation and Deflation
Caught in the crossfire between the forces of inflation and the armies of deflation, stocks have been immobilized. They “should” go down…but they are getting mixed signals. Deflation forces them to keep their heads down. But inflation prevents them from retreating.
February 21st, 2008 | Bill Bonner | 1 comment | Continued