Deflation deniers devastated by gold's reality.
Quantitative easing is inflationary. More dollars buy less and less
My prediction is that the collapse from all the overspending will come. It must eventually given the rates involved I don’t see how it can be inflated away without such impact to average people that it drives the masses to poverty.
Deflation is typically driven by overcapacity, improvements, and efficiencies that cause commodity inputs to be more expensive then the outputs over time. It’s what happened in the late 1800’s due to the fast expansion of mass production. It’s what has happened in the technology world with Moore’s law, etc.
So when the collapse comes the basics will inflate: food, housing, energy. Everything not required to survive will deflate. It’s actually been doing that over the past 7 years since 2008. Food is up, energy has only been held steady due to the new technologies implemented, cars are not being sold as often (see: http://www.freerepublic.com/focus/f-chat/3317989/posts), housing is still in a slump, but rents are up....
Sorry started rambling....