Inflation in a Great Depression?

It’s bankruptcy and deflation, not inflation

Inflation is not inevitable at all. In fact, what we are seeing is massive deleveraging which is deflationary. As people lose jobs at record numbers less and less money enters the economy which means sales of goods and services fall. Demand falls. All of this is DEFLATIONARY, not inflationary. Prices are falling steeply in real estate bringing down the cost of housing. The temporary commodities increases are likely to be short lived and will fall sharply again like they did late last July. The only way we can have inflation is if PEOPLE ARE BEING PAID MORE MONEY. Otherwise there is no way higher prices can be supported, and prices fall.

–A.P

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