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Sunday, October 4, 2009

Inflation vs Deflation continued

On Wednesday I posted that I am listening to great audio series of prominent inflationists and deflationists to understand US Dollar issues. (Sept 5th through Oct 3rd) No matter what you think of the economy direction, the policy of the US printing large sums of money, and the huge destruction of credit, are at the heart of the future of the US dollar.

Much smarter people than myself on this series are making compelling arguments for either camp. Mish(Video), Robert Precter, Mark Faber(Video), Peter Schiff (Video), Daniel R. Amerman, and Harry Dent.

For me to make sense of this, I need to break down the components, building a case of my thoughts of each topic, to culminate into a view I can make sense of. In the end, NOBODY can know the outcome, since, the outcome is dependent on what people do in the future. However, it is possible to make an educated guess based on the typical decision making pattern of the big powers involved.

My first post in this long series of Inflation vs Deflation, will be what is Money. The outcome of inflation or deflation, which is a fancy way of saying the US dollar retains/appreciates value vs moves towards being worthless, is critical to ensuring keeping wealth.

The Financial Sense News Hour posted their conclusions from both sides on October 3rd, which I will get to listen to this week. I am going to sketch out my thoughts before listening to their conclusions, then revise for my posts. I encourage you to listen to all the information presented in this series, the valuation of the USD is the elephant in the room during this crisis.

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