Some talking talking heads are calling 2009 a year of deflation while other say inflation will erode everyone's saving. I have no idea which way things will go. What do you guys think and why? Will 2009 be a year of inflation or deflation? MII
I see massive inflation in 2009...UNLESS. 1. Obama shrinks Fedzilla down to a manageable size, the military in particular. 2. Obama compels the banks to accept higher reserve requirements, which would keep more of the exploding money supply out of circulation.
That is a tought question. A bad economy generally means deflation. But when the government tries to fight it by firing up the printing presses and vastly increasing the money supply, that can only cause inflation. Maybe we'll get lucky and the two things will balance each other out? One things for sure, I'm sure enjoying the deflation in gas prices lately. My last fillup was $1.49/gallon. Sweet.
Yeah, the printing presses a running hot so that should equal inflation BUT then again if the economy tanks then maybe deflation. I'm kind of thinking inflation for now, but God I hope not. Also, if inflation happens then what will happen with the exchange rate? Will the USD be worth 1/2 or 1/4 it's present value?
Yes but this is just an acceleration of the process inherent in a system which is continually devaluing the dollar with low interest rates. The dollar is worth two cents compared to 1913.
There still only 1 vote and it's for deflation - I take it, no one else knows where the hell this roller coaster is going, or even if it'll stay on the tracks? Well, that makes me feel better. I'm hoping for deflation but I thin inflation might be more likely IF they keep printing so much new money to pay for all the Obama infrastructure projects.
I'm waiting for the Obama inauguration and his economic policy. But in the short term, imports will get expensive, so it all depends on the Chinese and how far they will hold up the US dollar.
For inflation to occur, people have to have a lot of money and demand products and services. The only demand that will come from is the government printing and spending money. But that is only a few hundred billion. More likely scenario is Stagflation.... So, I say deflation...dont forget, the oil price is going up as OPEC cuts back production...that is not because of high demand....
real worried. Then again, I moved to AU, so inflation in the USA might mean the AUD rises? Geesh... its all very complicated Please Register or Log in to view the hidden image!
