[schu]

Deflation is the death knell of debt issuers. Who is the largest debt issuer in the world? Your friends at the US treasury. Deflation implies a more valuable dollar, which means you pay back what you owe with more expensive money.

If there is one thing you can count on, it is that they will do ANYTHING to inflate/devalue the currency.

What we really have is a form of late 1970s stagflation. Prices of what you need (oil, food) are on the rise (although WTI is now under $80) while prices for your biggest asset (your house typically) is shrinking and looks to do so for a while. Add that it looks like taxes will go up and the middle class is getting squeezed big time.

schu

[pianomikey]

What we really have is a form of late 1970s stagflation. Prices of what you need (oil, food) are on the rise (although WTI is now under $80) while prices for your biggest asset (your house typically) is shrinking and looks to do so for a while.

Not completely true. While businesses and commercial real estate are still struggling to add value, home values have increased in almost every state in the union, especially my great state of Arizona.