we have inflation in the usa ..., page-5

"My comments would be that in the current marketplace we have the million dollar house that is now selling for $400,000 and the $100,000 stock portfolio now worth $80,000."

This is what happened in Japan (only worse) while CPI didn't fall below zero for any meaningful time. But anyone claiming Japan hasn't had two lost decades of deflation is kidding themselves.

Walmart is able to raise prices from depressed levels because much of their competition is out of business. But sky-high unemployment and collapsing private credit is deflationary, no question. US sales tax revenues continue to fall.

Anyone notice what bond yields are doing? They're falling hard, not worried about inflation or Bernanke's QE2. Nothing is smarter than the bond market...

Rowingboat