the question is are we heading into a deflationary depression as Prechter proposed years ago or are we heading into inflation/hyper inflation? In deflation silver is a disaster.gold is the better of all currencies but drops too.

Paul S Cohen 179 days ago

The only reason we saw deflation was from the forced selling from the margin calls.  This bout with deflation was temporary and will not last.  Fundamentals will come into play and right now the government in collusion with the B-52 Ben Bernenke is spending and creating a ton of money.  They are trying to fill a big black hole of debt instead of allowing the bankruptcies.  If the government allowed all of the bankruptcies it WOULD be deflationary like a mofugga.  The fact is they are not they are attempting to print their way out of this.  Inflation is inevitable as I stated do not let this government headfake fool u.

tjeffersonsghost 179 days ago

deflation is the destruction of credit and money. the money is gone. credit is gone and will remain MIA due to derivatives. the government is only prolonging their inevitable failure. you won't have enough money to buy a wheel barrow

Paul S Cohen 179 days ago

Hehe I know what deflation is.  The money that is gone is money that was lost from the banks being leveraged to the hilt and losing a lot more money than they had.  The losses were assured during this forced selling we have seen this past 3 to 4 months.  Instead of allowing companies to go under however which would liquidate these losses the FED is trying to print all of that lost money into existence.  Trust me this deflationary period is temparary and will not last much more than another month or two.  Who knows we may have even come to the end.  All of this money created by the FED and the government will not just disapear.  Pair that with all of this "stimulus" that is going into the market by the Obama administration we will be lucky to just get off with inflation.  We might even hit Hyper.

tjeffersonsghost 179 days ago

Obama will most likely overshoot it by late 2010 taking us into a serious devaluation of the dollar....which is needed to make the system solvent anyway

Subir G. 179 days ago

That's what I said to some people. There has to be a consequence to all this money printing. But most people told me no is The United States no one can touch us and we can do pretty muc anything. But I do not think that's true based on what I read here.

mebaria 179 days ago

Reply to Subir G.

I disagree Subir we dont need to print money to make this system solvent that is a farce.  We have TO MUCH debt out there that needs to be liquidated via bankruptcies.  The crappy thing is these guys will hoard what little money is in the money supply and force the bankruptcies on others.  It wont be Obama that overshoots the FED has already set aside $8.5 trillion dollars.  Estimates are all the way in the 10s and even 100s of trillions in the derivatives markets.  We have NO clue how much these criminals in the banking industry have lost.  We have no clue how much money we are giving them and what crap they are giving in return.  Basically we are being told sit down, shut up, and take it like a champ.

tjeffersonsghost 179 days ago