Deflation and Silver

http://www.guerillastocktrading.com/stock-market/crb-index-accurate-in-predic... Deflation is a reduction in the common price level of products and services. Deflation happens when the yearly inflation rate drops under zero percent (a negative inflation rate), causing an increase in the real value of money -- enabling one to buy even more products with the same amount of money. This really should not be mixed up with disinflation, a slow down in the inflation rate (when inflation declines to lower levels). As inflation decreases the real value of paper money with time, opposite of that scenario, deflation increases the real value of paper money.

Hence deflation is bad for gold and silver because it raises the value of paper money. In other words one can purchase a greater amount of gold and silver with the same amount of paper money.

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Education

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• Deflation
• and
• Silver

[creditliberation]

what I don't understand is...how can we have a deflationary scenario if our gov't keeps printing more $?? I can see deflation happen only in certain industries based on laws of supply and demand. i.e.- the current housing market..I can see deflation happening since it's simply not an desirable item since unemployment is so high. Banks aren't giving out loans like they used to. I see both inflation and deflation. My take on this is we will have inflation on items that are considered neccessar

[StockTradingMaster]

@creditliberation You're asking the right question but assuming the wrong answer. The gov't is not printing more and more money as evidenced by the M1 and M2 money supply. See my recent U.S. dollar video where I debunk the myth that the government is printing more money AND I show how the brilliant Bernanke and Co. orchestrated the bailout without printing more money. Don't let Fix News, I mean Fox News and Beck fool you into thinking gov't is printing money like crazy... that's just politics.

[creditliberation]

@StockTradingMaster I am not finding the link where you debunk government is not printing more money...I've been to your blog and find nothing regarding that. If you can be kind enough to send me the direct link to it I'd appreciated.

Thanks

[StockTradingMaster]

@creditliberation Free your Peter Schit, I mean Schiff twisted mind. Can't post links in this comment box. Google (no quotes) "the myth of hyperinflation" then scroll down and click on the freerepublic article by Mark Sunshine

[TREACLE97]

So....do you have any bits of gold or silver you won't be needing? - I have quite a lot of paper notes, so I might just be the fool you have been looking for! - sell it to me now while its in a huge bubble - its an opportunity for you to get your hands on some of the additional money benanke is printing ahead of everyone else!

[StockTradingMaster]

@TREACLE97 You really are stupid. But that's ok, each to his own stupidity. That's the great thing about America, you are free to be a moron. I enjoy making money off of traders like you who think Bernanke is printing money like crazy because Fix News... err Fox News and Glenn Beck told you so without you checking the M1 and M2 money supply for yourself. I will continue to make money off you gold perma-bulls every chance I get.

[StockTradingMaster]

@quadcatfly Bonds are up 11% in 5 months which is huge for bonds and it has prompted the famous technical analyst John Murphy to declare they are going parabolic and you're calling them crap? Oh that's right. You're so dumb you brought a spoon to the superbowl.

[quadcatfly]

lol. pile of crap. yeah buy gov bonds, knock yself out...

oh and you hear that the recovery is here!!!

[StockTradingMaster]

@ohio1998 LOL. Right. I delete a lot of hate mail from gold bugs which usually have some connection with Fox News, Republicans, and Tea Party nuts. Gold is a good buy no matter how high it goes because it's going to keep going. Gold is a good buy no matter how low it goes because it's going to bottom and then bounce back up. Look, gold is good right now because of uptrend and seasonality. Grab your quick profits, don't be too greedy, then get the hell out as fast as you can.

[StockTradingMaster]

@youtuuser That argument doesn't make sense. Disinflation is going on with the US dollar increasing in value as paper currency strengthens against gold and silver, but screw it because if deflation hits (below 0 inflation) then the government will act to cause inflation, and then we'll make money being long gold and silver then. What?! Why not be long the US dollar and bonds now, and buy gold or silver when/if deflation becomes more of a reality. Come on people.