Perception versus reality

Idle thinking:

My observation is that those that look around and see deflation are seing what I would call class deflation. Certainly the largest measure of "money supply" has exploded. What has not exploded is that money that circulates amung the middle and lower classes. Money is moving up the greed chain. The rich and super rich are in better shape than ever. Some dumb CEO can run a billion $ corp into the ground and get a severence package in the neighborhood of hundreds of millions $.

The guy laid off in his factory gets $256 a week in unemployment. The amount of money for the little guy to go to a baseball game has dried up. The amount of $s available for the rich to buy a $10 mil yacht is just chump change to be frittered away to stave off boredom.

The sad part is that as prices continue their upward spiral, the middle class is shrinking. The % of the population who can raise a family and make it by working in a stable career has been shrinking for 50 years. The last 25 years has been fueled by the idiotic notion that one is just as well off if he can borrow as he is if he can save.

Those that believe in deflation have a valid perspective. BUT, they had better prepare for the inflation that will be recognized soon, lest they suffer an very unpleasant fate.

Debate is healthy. A pile of greenbacks is of temporary comfort. Get physical while you can. No matter which camp you are in , inflation or deflation, it will ease the pain.

In the end GATA will be seen as having been right for the last 11 years and as a real service to those that will take the time to heed the message.

Scruffy