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Tuesday, March 24, 2009

Inflation or Deflation? That is the Question.

I think we all recognize that we are in a time of change. The leader of the US has promised change. We are all beginning to wonder what this change will actually be. Some are now having second thoughts for voting for change. We are where we are now. And the question is where are things going.

I do think we are in for change...we have seen it start. What I am assessing is what will this change be. Will it be more of the same? I think we can easily concluded that the answer is no. We are in a major state of change...more financially, economically and politically. This change could have serious and significant affect upon us all.

I have been thinking about this for some time, concerned with the situation. The question that we all need to ask ourselves and assess is whether the change will be (1) inflationary or deflationary or (2) hyper inflation or Great Depression 2.

I reject the first option of inflationary/deflation case. We are not in a situation that we will have either moderate inflation or deflation/recession.

The current environment indicates major forces in play; with economic events that have not been seen for 50-80 years.

So what will it be? HyperInflation or the Great Depression 2? Or will all of the action by the governments be successfull and return us to the norm?

Enough for now. Post your comments...what do you think? And what do you think should be done, and what are you doing ?

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