[Freedom56v2]

Interesting about restocking....had not heard that; however, some say that housing and to some extent stocks were in a bubble.

[muawiyah]

Restocking is the culprit every time. You can think you are seeing inflation, but what you are really seeing is lower priced items being moved off the market because their manufacturers simply cannot recover their investment costs through a sale.

The manufacturers then turn to higher cost items to stay in the market. They can do that as long as supplies hold out, but eventually the higher priced products disappear too.

One of the major characteristics of the Great Depression was that people had money but there was nothing to buy! Moreover, if they put it in a bank there was no interest paid!

Manufacturing ground to a halt and the government took over the home loan industry.

We are not out of the deflationary woods yet.