John Mauldin: We face the deflation of the Depression era

By on September 10, 2009

John Mauldin provides a lengthy expose’ on the deflationary forces facing the economy. As opposed to a good deflation, there is a problematic weakness in asset prices. A bad deflation, which is not a product of increases in productivity, can actually be worse than out of control inflation. Out of control deflation can result in extraordinary unemployment and depressionary conditions.

Mauldin answers the question of whether a rising gold price signals oncoming inflation with an emphatic “no.” He points out there is zero correlation between the two.

Source:

http://www.safehaven.com/article-14404.htm
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One Comment

  1. Tin

    September 30, 2009 at 7:07 pm

    Things are always darkest just before they go completely black.

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