inflation vs deflation - again, page-13

It seems the concept of stagflation continuely gets a low showing in these discussions.

Inflation is happening in the price of goods and services.

Why? Increased money supply devalueing currencies combined with the hangover of hte boom period where there is a built in rising cost base.

Deflation is occurring in the price of most asset classes.

Why? Whilst money supply has increased, credit availalibity for the more expensive class of goods (assets) is contracting. Fewer transactions (demand) with constant if not increasing supply (forced sales from job losses???? other factors).

The above is most simplistic. I'm sure otehrs can flavour my thoughts better and a bit differently.

For my mind I accept both occurring at the same time. The net effect could be as damaging as hyper inflation. Should hyper inflation occur with continued deflation in asset classes, then I think we are in real trouble.

Just thoughts

GC