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Deflation Revisited
Hyperinflationary costs go up faster than incomes. They further decimate US productivity, prosperity, savings and trade. Imagine paying $1000 or $20,000 for a Chinese toy. Oh, 3-D LED TVs and Korean Cars. Who buys them on credit anymore?
Our challenge to art collectors, diamond, gold and silver bugs still applies:
Let us know when Carrefour, Metro, Tesco or Walmart accepts your tangibles and gives you Gold coin change for a loaf of bread.
Might as well bring food or a product to a farmers market. More people are growing and making their own and bartering with neighbors. Hello EBay and Meg Whitman as Governator II. Maybe she can auction off CA State Property on EBay like Palin’s Alaskan Corporate Jet. There is already news that State Buildings are on the market.
http://www.dgs.ca.gov/default.htm
The Big4 still think, with a few profitable exceptions shared with subscribers, the best trades may be deflation shorts, particularly in precious metals, so we are selling on strength with a very few exceptions where we are buying on weakness.
The Big Picture Primary Trend may be Deflation.
This of course is a highly suspect contrary opinion, since most may still be living in the reflation expectation camp with inflation fear.
The shadow knows the world of hurt.
The bigger risk in the foreseeable future may be man-made Armageddon as the armed devils’ debts come due and deflated grasshoppers that did not save like the ants or prophets who did not build and outfit Noah’s Ark find themselves cold and hungry.
(Incidentally, one of our TopTen closely-held dividend-discount company prospects for Spring is an outfitter.)
Maybe these two movies are just an unconscious coincidence?
http://www.youtube.com/watch?v=iq6q2BrTino 3:25
http://www.youtube.com/watch?v=Hz86TsGx3fc 2:48
Regards*Rich
