“Deflation” or “Inflation”.
Jul 30th, 2010 by Randy Toman
If the government makes the decision to say there is no inflation. Social Security recipients will not get any cost of living increase. It will be the second year in a row that they had no adjustment in SS payments. It will mean all SS folks will be living off of January 2009 cost of living SS adjustments and for the past 2 years they will be froze at fixed income. Local school taxes have gone up 6.17% with the mailing of the tax bill this summer.
Now I have had an on going verbal battle with some folks here locally regarding what is happening to the economy and do we have “Inflation” or do we have “Deflation”. They have taken the position it is “Deflation” that is were the economy is at and informing me I haven’t a clue as to what I was talking about when I said, “Inflation is about to hit us big time.” They also said, I was not able to give them theory and/or documentation as to why I’m taking my position and therefore was only being contentious and in fact ignorant as to what I was talking about.
At one point in my feeble attempt to defend my “Inflation” position I said, My wife keeps telling me food prices are going through the roof with each passing week she is buying the weekly groceries. That defense of my position was in no way going to count and that tidbit of information did not matter and/or was not scientific enough to bear any fruit for the justification of my position. That was in no way a fact and could not be accepted by him.
Anyway, enough of this let me give you two paragraphs from the “Miles Franklin” E-mail newsletter of July 30, 2010. Page 8
(Entitled)
National Inflation Association
“If you do a Google search for, “There is no inflation”, it will bring up a shocking 385,000 web results and almost all of the articles are related to the U.S. economy. Investors around the globe are pointing to the consumer price index (CPI), which shows prices only up 1.05% from one year ago, and saying that inflation in the U.S. is not a problem. The most popular forecast by Wall Street analysts today is that the U.S. is headed for a long period of deflation, similar to Japan’s “Lost Decade”. NIA is currently in the process of dissecting exactly what took place during Japan’s “Lost Decade”. We are producing a short movie comparing Japan’s economy to the U.S. economy and it will be released in the coming weeks.”
“NIA considers gold to be the best gauge of inflation, not the CPI. Most experts on Wall Street chalk up gold’s rise from $255.95 to $1,158 this decade to rising fears and uncertainties and increasing jewelry demand from India, while maintaining that there is no inflation because the CPI says so. They fail to realize that the government has an agenda to minimize CPI increases in order to keep Social Security payment increases as low as possible. In the future, if the government decides to bailout their banker friends from hyperinflation by adjusting mortgage contracts to the rate of inflation, NIA predicts they will adjust mortgage principles based on the price of gold and not the CPI.”
After reading those two paragraphs, you tell me which way you think we maybe going. I say the country /dollar is going down, (worth-less) while gold and silver goes through the roof and so do the cost of goods. Isn’t that some kind of indicator of “Inflation”, maybe we might even be called “Inflation”.
In the same newsletter quoting Jim Sinclair;
“Hyperinflation will come over night as Jim predicts, forget gradual.”
Watch for a behavioral change in the folks and their banking habits, they will no longer trust the dollar nor the banks. They already are beginning to question the government and trusting in the politicians is almost non-existent. When the dollar goes and the people no longer trust either government or the money, we shall have serious problems holding things together.
We Shall See don’t you think?

