Quote of the day.
By way of ZeroHedge.
I still stand behind my long-held thesis that the inflation/deflation debate is misleading, since there is no single answer. There will be a full spectrum of price behaviors, and they will be best understood by Maslow's hierarchy of needs.
I do not know if a loaf of bread is going to cost more or less in five years in terms of the dollar or gold or any other monetary metric. I do know that the loaf of bread/session of yoga or loaf of bread/Stairmaster or loaf of bread/college course in philosophy spread is going to collapse. Our kids are going to look back at the amount of time and energy we devoted to episodes of self-actualization, even as we let the system crumble, and wonder how their parents could have been such fools.
Even though I'm firmly in the inflationary camp, I agree with this completely. "Inflation in everything you need, deflation in everything you don't." Or, "Inflation in everything you buy with cash, deflation in everything you buy with debt." If you're debt free, the next few years will offer you an excellent opportunity to buy a boat.