Does a reduction in M2 Money supply yields Deflation?

[Happy Hopping]

Quote from trefoil:

and absent that, you're not going to get inflation; the main thing to watch for will be deflation.
There's 305 basis points between here and zero on the 10 year Treasury. Given that there is no new net private debt looking to be securitized, a good portion of those basis points could easily go up in smoke from people putting money in them because there is no other place for the money to go. [/B]

Just because you don't have inflation, it does not auto default to deflation. We can have flat or low growth, in fact, IMF economists are projecting modest growth in 2010 and 2011.

I'm trying to decide if I should invest in gold, because if there is deflation, then gold will drop big time.

and speaking of treasury, does any1 has the link for the 10 yr. historical chart for the 3 mth., 2 yr., 5 yr. 10 yr. and 30 yr. yield ? Preferably all of them in 1 chart from 2000 to 2010?

 

[Happy Hopping]

Quote from ralph00:

I like and agree with Hoisington's analysis. It doesn't hurt that these guys have been on the money with their calls for years.

He said in that PDF file, that the Fed is not printing $$ eventhough their bal. sheet is $1.2T.

If so, why is it that in the FOMC min. today:

By contrast, a few participants noted the possibility that a potentially unsustainable fiscal position and the size of the Federal Reserve's balance sheet could boost inflation expectations and actual inflation over time.