inflation vs deflation mish shedlock in 2005, page-2

lol, how can Mish be a golbug when he doesn't even beleive that gold is "real money" (whatever that is): http://globaleconomicanalysis.blogspot.com/2007/06/misconceptions-about-gold.html

I'm a little dubious, all three major instances of deflation in the USA were associated with the gold standard. Perhaps Mish did not begin his historical analysis early enough.

The US introduced a defacto gold standard in 1834, and the first great US deflation broke out in 1836.

The USA reinstated the gold standard in 1871, this was followed in 1873 by the Great Sag--a deflationary period lasting 23 years.

1930s depression--there was a discussion about the role of the gold standard in this forum a couple of days ago.

Gold will tell us in due course. A rise above $1000 and it will be inflation. A fall below 700 and it will be deflation. Right now gold is saying its neither for the time being.