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What’s the Difference Between Deflation and Hyperinflation? Why do you ask?
Businesses can only raise profits a limited amount with layoffs, inventory adjustments and cost-cutting before they are out of business.
Governments can only borrow or tax so much before revenues run dry and they go bankrupt.
I am having a hard time getting my mind around all this new stuff!
There truly is nothing new under the sun. Sabbatical and Jubilee cycles and waves played out many times over many lifetimes.
So why are gold, platinum and silver going up with deflation?
Many people do not comprehend deflation and depression. They may think it’s soon inflationary business again as usual, only more of it this time. They may expect Central Banks and Treasuries to keep creating more money and credit, even though there is no demand for it except from hedge fund managers losing their shirts. Eventually they go out of business and all is quiet along the western front. Then we go back to basic values.
What if this is all wrong?
We have this wonderful invention beside helicopters called Trailing Buy and Sell Stop losses. See our post on how to best use them.
Suffice to say, as long as gold, platinum and silver keep going up at the 15+% compound annual growth rate the last decade, Trailing Sell Stops will keep us in. They are up 60% this last year, suggestive of a blowoff top.
When Bonds, Dollars, Real Estate and Stocks stop going down, Trailing Buy Stops get us back in.
A cheerful look brings joy to the heart, and good news gives health to the bones. Proverbs 15:30
Sincerely*Rich JubileeProsperity@gmail.com
