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The American Empire in a Changing World



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Wednesday, August 10, 2011

'Inflation & Deflation in a Storm'

from goldseek....

"The events of the last ten days are surely for the history books. The story must be told through a prism of the epic battle between inflation and deflation. The Jackass hates the parlance, since each term is abused. Inflation is the expansion of the monetary supply, while deflation is the decline in that supply. The Powerz would prefer that the public misconstrue what inflation is, so that they can continue to exploit it for their private gain and control of entire banking systems. The US Federal Reserve would prefer that the public remain clueless on the inflation threat, by citing the deflation threat in a manner to justify their Weimar-like hyper inflation. They have expanded the US$ money supply through USTreasury debt monetization severely, to the tune of $2 trillion in two years. That is bigtime inflation!! The downstream consequence is a fast notable rise in the cost structure across the entire global economy, complete with loud outcry. The reaction has been to protect against the price inflation (higher costs) and bond deflation (lost value) by the widespread purchase of both Gold & Silver (bonafide safe haven)".............READ MORE

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