Wednesday, October 7, 2009

Inflation or Deflation?????

A battle rages between those observes who see inflation on the immediate horizon and those who see deflation. Deflationists argue that the infusion of credit from the government is keeping the U.S. from entering a deflationary whirlpool from which there is no easy escape.

Inflationists argue that the increase in money supply will eventually trigger Weimer like inflation.

For an excellent, intelligible analysis of how the economy can be both inflationary and deflationary, check out this webpage:
http://www.kingworldnews.com/kingworldnews/G+_Articles/Entries/2009/10/6_The_US_Dollar_in_CrisisBy_Ron_Hera.html

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