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James Rickards comments on Inflation/Deflation – What’s Next?

1. Fullgoldcrown says:

   December 27, 2020 - 12:38 am at 12:38 am

   Interesting take.

   Thanks Foxy

2. Chartsmaster says:

   December 27, 2020 - 9:02 am at 9:02 am

   First, during the depression with deflation, gold preserved and increased wealth(dollar was still backed by gold during that time. Second, I have posted here previously(and elsewhere) you cannot have deflation if the currency is pure fiat and not backed by gold(or silver). During all history when we have had deflation, the currency was backed by gold and or silver. The deflationists are either unaware or purposely leaving that fact out.

   • silver fox says:

     December 27, 2020 - 4:00 pm at 4:00 pm

     >>you cannot have deflation if the currency is pure fiat and not backed by gold(or silver)<<<

     I see. So the real estate crash and market crash of 2008 wasn't a deflation?
     A fiat currency can and does deflate. It just doesn't stay there.
     A deflation scare could precede the inflation era we are anticipating.

     • Chartsmaster says:

       December 27, 2020 - 5:44 pm at 5:44 pm

       Of course individual and sometimes numerous markets drop from their highs for a period of time. During those periods general prices didn’t decline for any period of time. Any yearly, 5yr, ten yr period of time general prices rise. Sometimes rapidly, sometimes less so. You don’t just pick your specific market and call it deflation. Inflation or deflation is for a broad base of goods and services. If you are going to pick sectors, of course they can drop. That’s not deflation in the text book economic sense.