Friday, July 16, 2010

A Shift Toward The Big "D"

"In my October 2008 post, Four Potential Outcomes, I presented what I believed to be the four potential outcomes in the near future. Outcome #1, deflation, appears to have already swiftly occurred devasting asset prices in all sectors including commodities. The "missing piece" is that from an Austrian economics perspective, credit and money expansion need to deflate also. As we know, the opposite is occurring on a staggering level."
Random Roving, March 26, 2009

Well the chart below provides the "missing piece".  Money supply is tanking rapidly.  An Austrian economist would declare that deflation is here.  That would mean a decline in the value of everything. 


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