What next? Inflation or Deflation?

sadabbott

We have been witnessing increases in inflation recently due to food, energy and oil prices. With the credit crunch and recession, is it possible that we end up in a deflationary spiral?

Surely deflation will be deadly with the debt levels that exist.

Surely inflation is unsustainable in a slowing economy.

I fear that we are heading for a depression that is worse than the great depression.

SeanW

Hyperinflation if the government print money to pump into the banking system as you have suggested in other threads.

sadabbott

Surely inflation is the only way out of this crisis. I guess that means we need to start seeing wage inflation.

amcluesent

>I fear that we are heading...<

Rather than refer to America in the Great Depression, the last days of the Weimar Republic are more like what the future holds.

Burning money...it was easier to get hold of banknotes than firewood.:eek:

sadabbott

amcluesent wrote: »

>I fear that we are heading...<

Rather than refer to America in the Great Depression, the last days of the Weimar Republic are more like what the future holds.

Burning money...it was easier to get hold of banknotes than firewood.:eek:

With my heating bills, I think it would be cheaper to burn money (or Argos catalogues)

pumpndump

I would have said deflation was the natural trend; but since the US bailout, which will probably be paid for by toy money, I am not so sure.

Masomnia

amcluesent wrote: »

>I fear that we are heading...<

Rather than refer to America in the Great Depression, the last days of the Weimar Republic are more like what the future holds.

Burning money...it was easier to get hold of banknotes than firewood.:eek:

Not to be pedantic... but the Weimar Republic lasted until 1933, whilst hyperinflation was over by the time of the introduction of the Reichsmark in 1926.

Of course other economic problems lasted longer.

What makes you think there'll be hyperinflation? Just out of curiosity.

SeanW

Masomnia wrote: »

Not to be pedantic... but the Weimar Republic lasted until 1933, whilst hyperinflation was over by the time of the introduction of the Reichsmark in 1926.

Of course other economic problems lasted longer.

What makes you think there'll be hyperinflation? Just out of curiosity.

If you read sadabbott's posts, he or she has suggested the government print money to solve the debts.

fatpig_2

sadabbott wrote: »

I fear that we are heading for a depression that is worse than the great depression.

no, it'll be much worse than that

fatpig_2

SeanW wrote: »

If you read sadabbott's posts, he or she has suggested the government print money to solve the debts.

He works for a Building Society. His doomster posts are an attempt to get savers to switch from banks to building societies

luvpump

Deflation is a deffinate risk IMO