Evening Parrot, i have been giving this all some thought. It seems to me that the media feeds us all the flavour of the moment and we all fret about that accordingly.
for several years we have heard nothing except the coming stagflation.....but now in the blink of an eye the buzz words are deflation and depression. recently we have also seen gold prices sink.
my conclusion is this is all the result of a phase we are going through. whilst times were good many people were in debt up to their eyeballs. Now in these time we need to get ourselves out of debt at any cost. As a result we are seeing a fire sale of property, equities and first born children. but when this phase is complete we will still be faced with the inherent weakness of the fiat currency.....in the blink of an eye the media flavour will shift back to stagflation and we shall all fret accordinly.
We touched on this last night on a different gold thread. After a massive market sell off in 73/74 gold bottomed a year later at $104......5 years later it was $850.
