Actually, what we’re getting now is fairly extreme, but seems to be cancelling itself out, thus far. Unprecedented destruction of untold billions, with unprecedented money being thrown at it worldwide. Deflation seems to be holding its own, in the face of such an onslaught. But, one or more of the various central banks will overplay their hand, eventually.
So, I’d say a mix of deflation in big ticket items and inflation in basic necessities will continue, until somebody makes the big mistake, then we’ll slide into one or the other in earnest. Circumstances at the time will dictate which; I can’t tell from this vantage point.
Insightful. Thanks. I have to give that more thought.
Yes, exactly, altho I expect to see necessities prices to drop some based on the need for more earnings. ‘08 Q4 is going to look horrific.