i was just reading on gold silver.com both articles on gold and silver, where they think we might be headed for a massive deflationary period. In mikes book it does say deflation before hyperinflation, do you think they will continue to print money after a period of deflation, or do we think they won't be printing money any more? i was thinking of swapping some silver for gold if we are headed into a defllationary spiral, what does everybody think?
Catch22 They are stuffed if they print money so they will avoid doing that. BUT they are stuffed if they do not print money. BUT remember after hyper inflation comes super duper hyper deflation i.e toilet paper. If your going to try riding the wave, think of someone trying to ride the Japanese tsunami... not recommended Surprisingly enough no one wins with a catch 22, aim to survive and not WIN
In deflationary , either wont survive, you will still expect a net loss of 20% - 30%. If we get a repeat of GFC be prepared for some eye watering levels of gold and even worse for silver ! The only way to survive is hedge your physical using paper, other then that expect the losses. Wil there be inflation, my take is there will be cause no one will want to take the losses and deal with austerity but it wont be that easy ... lots of technical things that can happen along the way.
Deflation kills banks. Inflation will kill the currency. Rock. Hard place. Bernanke already said that he would not allow deflation to rule the day. When they can't push markets around with rumors any more and deflation looks to be taking root, I expect the spigot to open again. YMMV.
Also the other suggestion doing the rounds is that to do nothing is a strategic move by Germany, ECB & Bilderbergers so that a Germano-centric Europe (aka 'USE' or as Ferguson puts it 'The Wholly German Empire' - not a new concept of course by any measure) is forced to develop & any economic attrition is borne mostly by the peripheral non-core 'states'. Regardless it all looks like Germany's going to dominate for at least the foreseeable... Read Niall Ferguson's piece from last weekend's WSJ here - Europe in 2021: http://online.wsj.com/article/SB10001424052970203699404577044172754446162.html x
