It is hard to predict on short term horizons whether you get inflation or deflation given that monetary debasement causes an initial loss in velocity as people withdraw from the economy. Long term obviously we are being inflated to deth. What we are in currently is a Biflationary Depression. http://www.futurnamics.com/biflation.php
“Long term obviously we are being inflated to deth. What we are in currently is a Biflationary “
This is the result of Bernanke’s free money policy. Decrease the interest rates so low that people can not afford to save money in the conventional way, the return is actually negative when inflation is factored in. Where else are you going to make even a semi decent return? The only place for the majority, is the stock market.
So you are forced to either lose money in bonds or CD’s, or take a big risk in an over bought market.
For savers, the Fed is stealing your money and giving it to crony bankers and institutions.