Hi Ike,

Just to put things in my terms; you are free to disagree if you wish but I won't change my Austrian outlook.

It is impossible, by definition, to have a true deflation when the government (and this is happening worldwide) is busy printing money. Deflation is a reduction in the supply of currency.

One can have an economic collapse (or what might be called a deflating economy) in the midst of currency printing but not a true deflationary collapse. In a true deflationary collapse like in the 30's currency was scarce but prices weren't high. Our prices are high compared to the past and they are going higher.

Some individuals might call what is happening today a deflationary collapse but it is more accurately termed an overindebted economic collapse.

And yes! I believe you are right that one horrendous economic collapse is headed our way.

I do not believe in or use the current definitions of inflation and deflation. In Austrian economics those terms relate only to the increase or decrease of the currency supply. It is easier to think clearly when one limits the definitions to currency supply only. Recent dictionaries include "price inflation" in their list of definitions. Older dictionaries list only the relationship to the amount currency in circulation as their definition.

I also try to write and speak of the stuff we carry in our wallets as currency and the stuff we might own a share or two in mining as money. Often I slip in these regards as old habits are hard to break.

P.