Posted on 10/03/2013 3:17:32 AM PDT by Mozilla
“Deflation due to technological advances is still the global macroeconomic trend in place, despite price increases in some categories due to political meddling and wacky environmental policies. “
The global destruction of money, via the destruction of debt (sovereign debt default, derivatives default, etc.) will lead to accelerated deflation in my opinion, and lead to a severe contraction of the global economy.
What I believe will happen is outside the experience of anyone alive today and their experience bias won’t allow them to consider the possibility. They are too busy thinking hyperinflation always results from creation of money by a government. Not so. Most money the US government has created is not in circulation. It is a computer entry on computer balance sheets.
What is coming is far, far, far worse than inflation. Again, my opinion, based on what is unfolding now, what we saw in 2008 and what has happened historically.
Choose to believe what you will.
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