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island911 island911 is offline
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Join Date: Mar 2001
Location: an island, upper left coast, USA
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Quote:
Originally Posted by Porsche-O-Phile View Post
Inflation is a tinderbox right now. Yes, it's being kept in check by a seriously deflating economy for now, but I have a hard time believing this can stave it off forever. ......
The part that you are missing is in how much new money was being created in the form of bank loans for ever-bubbling real estate. The amount of new dollars being created seems to be mostly/only in an effort to fill that hole . .a bit.

The fact of the matter is housing prices need to fall (deflation) to be more inline with wages.

Certainly there are those ringing the bell of "Buy gold - massive inflation is on it's way" BUT those are the same people who want you to buy the gold that they have. --certainly, if they felt that the gold would be worth sooooo much more in the future, they would just sit on it until then. ...how much do they spend on ad's to move the stuff?
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Old 08-27-2009, 02:36 PM
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