An investment newsletter, which I use as a guide what to read about, is stating that some key signals of deflation are happening right now:
1. U.S. consumer prices falling at an annual rate of 12%
2. U.S. producer prices falling at an annual rate of 26.4%
3. Commodity prices slammed by as much as 70% from their peak
These numbers aren't proof that it is going to happen. Nor is even the evidence of deflation a given that the world is going to end. However, deflation is always regarded by investors with a wary eye. It can be offset by inflation. This isn't good either. I get the feeling that not only are we are in a rock and a hard place; I get the feeling we are being "played." The same article said that the bailout money is just sitting in the hand's of the banks, which we already know. This letter comes into my mail, but it tends to be accurate. I do check its information. Other newspapers are speaking of depression. My sharing this is born of being wary of all the bullshit that will be forced upon us. Being in an economically vulnerable position strikes me as very dangerous. Especially, given that any social instability can generate the circumstances which crackdowns on the poor will be common. I don't mean to raise alarm; I just am a pessimist and am always wary of what the "authorities" say.
Deflation is not "less inflation." Massive deflation occurred between 1929 and 1930.
Definition of and ramification