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User Info Why we will experience deflation; entered at 2007-12-02 05:34:21
Poyayan
Posts: 1465
Registered: 2007-11-27
Hrm.... I do have 2 counter arguments here.

1) If there is soft economy and sign of deflation, wouldn't that's the sign for the fed to pump LOTS of money in the system to inflate the economy again?

2) If China's inflation problem is not going away, they will continue to strengthen their currency. That will be inflationary too. Check the Yuen vs US dollar exchange rate, Yuen is rising.
2007-12-02 05:34:21