INFLATION VS DEFLATION

 

There's a raging debate right now about whether inflation or deflation will take hold in the US and global economy.

Here's the simple answer: if the debt overwhelms US and global companies so that global finance collapses you'll get deflation.

If the US and Global Central Banks come to the rescue and print money and bail everyone out you'll get inflation - or stagflation.

If there is a Sovereign Debt Crisis the central banks will still try to print their way out and you'll get inflation or stagflation.

I'd bet the Central Banks keep printing.