Inflation vs deflation in US?

Excellent commentary..articles..etc..

Russia...Indonesia..Turkey...Argentina..Dominican Republic...Brazil...all are recent real world examples of countries in deep financial trouble...

In every case...interest rates went up violently as the currencies collapsed..in less than a year...rates went sharply lower along with the currencies...and began more normal trading ranges...

As I have said in previous posts...sell the dollar..and get into what ??? Yeah...what currency would be bought ? Why?

Banking systems will always want to be paid for risk...and there will always be risk...

To me...this is going to be trader's paradise...

Just position yourself for some welcomed volatility...

For good traders....a lot of money is going to be made...big time...

Looking forward to participating...

Hey..as a professional trader...just move to the part of the world that you like the best...and enjoy the fireworks....
 
Quote from Topsurfi:

I think a lot of valid arguments point to a deflationary scenario and that is what bond traders are playing right now.
But the strongest argument that in the end the hyperinflation will win is the dept level. We have passed the point of no return and more and more dept is made to pay the already existing dept.
More...
It will be either deflation followed by hyper-inflation or, with less probability, hyper-flation followed by deflation. What I’m really concerned is how bad the US economy and hence the world economy will go. It could turn out like World War Two except it’s China (Germany) vs. US (Britain/France). Unless the world economy re-balance runs its course in the next ten or twenty years when China’s military is not at the point to wage a full scale war against the US, we could have the World War Three.

It’s critical for the US to face the challenge now by busting the asset bubble and dealing with the pain. So people will invest in themselves (instead of bubbling asset markets) through education, developing new technologies, acquiring skills to be able to compete in the world labor market. The future of this country really depends on this.

Employment used to be, and should be, the way for average Joe to make a living. When you see investing (equity, property, etc.) becomes the major source of income for so many people, we are in serious trouble.
 
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