Check Out Money 101 This Week

You can read the whole article here. Bottom line is that never have we been more confused on the question of inflation or deflation. I attempt to explain what the issues are and what is at stake.

Prices go down, people lose jobs, interest rates disappear and the economy crumbles. The first time we saw it in the U.S. was back in 1836 when the railroads went bust, credit was squeezed, and cash was impossible to get. The money supply shrank by 34 percent! The next era of deflation occurred during the Civil War, and the last time we experienced it was during the 1930s, and we all know how that worked out. Deflation creates an environment where there is no incentive to invest and grow anything but a Victory Garden.

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