Mike Whitney on  deflation in Jan 2008

Mike Whitney on deflation in Dec 2009

You will notice little difference in the two posts.  The 2009 post simply says more of the same and the name of that game is Deflation.   Now don’t get all cocky on me and think you have this nailed, neither you or I do.  We will see fixed assets decrease still more , while our daily need items will rise in prices and our wages will be at a minimum stagnant.  The PTB will be screaming we have to fight inflation, ignore them that’s just a smoke screen. We are watching a game played by the supposed big boys and what we think or do is not a big event.  The die is cast they will bring us all the way to the bottom and the damn fools don’t realize that it spells the end of the companies they manage and quite possible the countries they run.  In the end , after a lot of pain by us , we will win and they will loose and the game will start over.  We have been this route many times before and in the end we rise up out of the garbage dump they have built and with the sweat of our brow we rebuild our country and the world.  Prepare for the most scary year you have ever seen and if I’m wrong we can always give our stores away to those in need.  Keep in mind this will be a new world , one in which growth is a dirty word and durability will replace throw it away cheap.


And return it will.  There are but two choices to handle our huge debt, inflate our way out of it or default.  Both will be painful.  Of the two other countries (Latin American) chose default and some our now doing quite well.  Time will tell and exactly when will  hyper inflation  hit is anybodies guess .  But here is the reason it will in the end and when you throw a multiplier in the formula you can end up with 140 Trillon bucks of new money backed by nothing , on top of that throw in the huge increase in interest rates and you’ve got the picture.

Explore posts in the same categories: CHECKBOOK ECONOMICS, deflation, depression, inflation


  1. Heidi Says:

    It is apparent our government has chosen to inflate our way out of debt. The “my Budget 360” article you refer to in this article is a must read!

    Thanks for another great post!

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