No. of Recommendations: 0
Mish and I disagree about inflation. He is a firm deflationist. I believe that inflation is inevitable, even if deflation occurs, in the short term, because the government's ballooning entitlement expenditures will force it to create a huge amount of fiat money (that is, money that isn't supported by real assets, such as gold, or real increases in productivity).

Deflation destroys wealth and erodes the ability of the government to levy taxes. No government purposely enters a deflationary period. The goal is measured inflation.

Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.