P.S. I’m sorry for the typos, I’m trying to get ready to eat. Hopefully this also adds a clickable link to the video.
http://www.hsdent.com/video/index.html
Someone trying to sell you something?
Maybe try Google before posting a vanity? There’s a ton of information on the internet re Harry S. Dent.
It’s hard for me to see deflation, since it looks like QE3 before the end of the year. Deflation would benefit me greatly, but I can’t see it happening...
Also, I think whoever’s in charge, Dim or Pubbie, won’t even ALLOW it to happen-makes the national debt more difficult to pay down, dontcha know!
Dent’s predictions are all over the place. He did call the Japanese downturn but he also predicted a 40K Dow. He seems to go with the shotgun approach to predicting, throwing a lot of stuff out there and capitalizing on the predictions that happen to be right. One website that rates economists and funds gave him the “Ultimate Charlatan” award.
http://www.maxfunds.com/?q=node/319
I would take what he has to say with a grain of salt.
Economists, themselves will never agree on anything, so thus it is, their opinions are common like buttoles. Everyone has one.
Don’t worry too much about deflation. “Helicopter” (see http://curiouscapitalist.blogs.time.com/2009/03/18/helicopter-ben-finally-hauls-out-the-helicopter/) Ben Bernanke would never let that happen. In the electronic age, he may not even need to print the money. One click of the button may be all he needs to create money out of thin air, and voila, no more deflation!
You’re going to find respected economists on both sides of this. I personally expect to see inflation before deflation, but what do I know? And, hey, if it were that easy to be so certain of the future, just think how boring life would be.
Supposedly, the secret is “diversification” — which simply means to develop a portfolio that will leave you equally devastated under either inflation or deflation :)
If one had converted $30,000 to gold when gold was at $300, he would have one hundred ounces of gold.
Today, with gold at $1800, one can pay off a mortgage of $180,000 with those coins.
If you believe those who point out that "gold IS money", then, deflation is occurring. What once required six hundred ounces of money to pay now only requires one hundred ounces.
I see little chance that our government will ever find a solution to having debts and unfunded obligations approaching perhaps 100 trillion dollars. They could fail to pay four out of five of those dollars and STILL have to print plenty of money.
I foresee incredible increases in black-market transactions (that is, hidden from the tax man) and a growing acceptance of "money" other than dollars. At the same time, there will be hordes of tax-collectors assigned to investigate and prosecute the perpetrators.
I wouldn't pay any attention to anyone who tries to scare you about "deflation". Doesn't know what he's talking about.
