re: Ann: Maronan Silver-Lead Project Assay Re... I would think...

re: Ann: Maronan Silver-Lead Project Assay Re... I would think in a deflationary scenario, or even one whereby the central planners are deleverging the economy via money-printing I would want to be in commodities. As you said about deflation, if there is no deleveraging via money printing then bonds/cash do exceptionally well, assuming the fixed income you have is with an institution that can survive the deflation (i.e. low gearing). In our current world, as I understand it, money-printing will inevitably lead to inflation sooner or later, so if there is inflation then fixed-income is a bad bet. Further it seems to me that these two forces are working at the same time due to the artificial ability of central-banks to print new money in an attempt to off-set deflationary tendencies (?hence negative real rates). So, as far as I am aware/concerned precious metals are where you want to be. Especially seeing as though there is a distinct possibility that a commodity standard may return due to a paper-money collapse. You can see in various parts of the media/societies the growing contempt of governments, bankers, state-sanctioned statistics and other propaganda to fix and manage the problems that they have created. Remembering too that paper/fiat money is about faith. If the people of a society have no faith in their government or national/supra-national currency, (in the case of the EU and it seems it is slowly creeping into the US) or vice-versa, then there is a danger of all-out paper money collapse, hence leading to a return to commodity money (gold/silver).

As you say (and is the standard dictate of the central banks) deflation = bad, low inflation = good. If there is deflation, then print. Repeat as needed.....