April 3, 2009

Why do I have a feeling disco will be making a comeback soon?

You can't print up or borrow $10 trillion and NOT eventually have inflation.

Eventually.

And not just regular inflation. Wild inflation.

But hey, they know that, and deep down, you know it too. It was the deal with the devil. Get rid of the Great Depression II, but get stuck with a collapsing currency and inflation down the line.

Inflation (check) then deflation (check) then inflation (watch this space). We've been saying it for years. It hath been foretold. It's just a matter of when.

Hey, anyone have a W.I.N. button I can borrow?


7 comments:

Andrew from Russia said...

Inflation (check) then deflation (check) then inflation (watch this space). We've been saying it for years. It hath been foretold. It's just a matter of when.

Right. And we're going to see many premature estimations of "when". That events have been unfolding at such a great pace over the last year does not mean that this pace will persist. I actually expect the things to be quite dull for a long time - just because foretelling a dramatic apocalypse is today's hottest theme. Isn't that a contrarian indicator by itself?

image009 said...

I don't know when you're going to get this through your head, but we will NOT see inflation anytime soon. This is deflation for as far as the eye can see. When unemployment begins to go down and wages begin to rise then look for it. Until then - deflation.

ghpacific said...

In trying to understand the deflation part of this cycle, I came upon this, http://londonbanker.blogspot.com/2008/07/fishers-debt-deflation-theory-of-great.html
The link to Professor Irving Fisher's analysis of the Great Depression written in 1933! is amazingly instructive. Now I just need someone to extrapolate it to today. Keith?

gutless and lazy said...

A comback? It's still in style in many European clubs!!!

Europe = That '70s Show.

Anonymous said...

dude, that's cool, just make sure to also bring back roller skates, striped knee high socks, Champion shorts, half shirts, iron ons and wrist bands and we will be alright. And handle bar porn stashes too.

Mitesh Damania said...

Party like it's 1979!

Anonymous said...

Gotta love Jack Davis!