gold $us880 .. , page-35

Hi Sharpshooter.

Just regarding the reduction of stock values (you call deflation) & the amount of money in circulation; regardless of how much stock prices have gone down the money in the sytem still remains the same. For every buyer there must be a seller so money flows from one person to another. It's only the paper value of stocks that has reduced (but even that depends on what point in time you reference that to), not the actual money in the system. With the increasing amount of money printing going on by the US & other central governments, the money supply is actually increasing. This should at some stage create a deflation in the value of money (i.e. inflation in value of assets). We saw how quickly the stock markets tanked (and US$ plus yen rose) due to the velocity of money. The reverse could happen equally as fast imo.

Cheers,
Z.