Inflation is coming!
Inflation or deflation?
Which will it be? Many economists and pundits are arguing whether we will see a deflationary spirlal or an inflationary blowout. I think it is still a bit early to tell. There is still some massiive deleveraging that needs to be done. Real Estate is still a nightmare no matter what you hear. It is amazing to see the stock market continually climb higher in the face of all this bad news. Some would say this is an indication of a budding bull market. I suspect it is nothing more than a massive bull trap. I personally am sitting onthe sidelines right now. I would rather miss the beginning of a bull than get trapped as the market plummets again. It seems like is always falls quicker that it goes up so if you are not always in front of a computer it can get pretty hairy.
The other thing we are seeing is commodity inflation is beginning to rage again. Check out the blog on wire and cableto see how it is affecting pricing in that industry. So you have to wonder, are people beginning to put money into "things" because they see that the dollar and all fiat currencies are just going to be inflated away? Remember the pictures of the Germans in the 20s or Zimbabwe today? Seems like buyng hard assets might not be such a bad idea. For another description on what inflation is check out this site. It is a very interesting read on the topic. Please feel free to leave us a comment with your thoughts on the situation.
We have also been looking for a site that would be a type of meeting place to talk about economics and inflation etc. What we found is that there are many blogs and forums out there, but nothing really that was an all in one type of meeting place. The other day we stumbled across a site that is a kind of social network meeting place covering economics. On the site you can blog, acess forums, post videos, chat, instant message and post classifieds all targeted towards the business and economics community. The name of the site is InflationBomb.com and is relatively new. If you are interested in learning more about inflation this is the place to go. Right now you can access all features on the site for free. I am not sure if they will go to a paid membership at some point but my understanding is all members that get in now will be able to remain members for no cost.
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There is no doubt that inflation is detrimental to development. During times of inflation, both the consumers and the firms are adversely affected. In fact, inflation can directly cause an increase in the poverty...
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