WhatFinger

Inflation is not likely out of control, but history is getting ready for another deflation. “Inflationists” should not be positioned in their convictions

Inflation: Out of Control?


The strongest run of “Inflation” in more than forty years is underway, and pundits claim that it has much further to go. Indeed, popular and highly regarded financial talk shows are reporting that “All paper currencies have eventually gone to zero”. Inevitably, such would indeed be catastrophic.

Not widely appreciated is that there are three types of inflation. The headline one that everyone knows is an uncomfortably soaring cost of living Then there are times when financial asset prices soar, which after “Inflation” makes everyone feel good. What accompanies either is a massive inflation in credit and/or currency. And when speculation in “things” or then “paper” blows out the crashes are painful. Particularly when the mania has been in the latter. These have been followed by contractions, of up to two decades.

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