Yes, easily, in my humble view. Something can inflate while something else deflates.
I tend to think Mish confuses (1) debt and derivative paper with (2) Treasuries and Dollars when he sees deflation. However, my respect for Mish's understanding of these matters is greater than for my own understanding, so I must consider the possibility that it is I, not he, who is confused on this matter.
I realize you can have inflation and deflation in the short term.
My question was , could this crisis end in both? Could we have both deflation and inflation after all the losses are taken and after the economy struggles to get started again or wouldn’t there be a clear outcome that either money expended or contracted?
I can see how we can have both in the short term. I can’t see how we can have both in the long term.
With Travis McGees suggestion, I can see how we could have deflation win, and then the government keeps printing so much for so long after deflation has won, they spur a new inflation. I can see that. But I can’t see inflation and deflation occurring simultaneously in different sectors after the crisis has run its course.
But then, I’m not very smart.