I fully agree that it is time to batten down the hatches. Things are going to get really bad, taxes will be going up, personal freedoms down, wars, etc. Getting prepared is very important. Food and weapons are clear wins. Decisions about paying down debt or taking on new debt, buying treasuries, holding cash, gold, or silver depend on the inflation/deflation question. If you put your savings in treasuries and the hyperinflationist turn out to be right, you could lose your savings.at99sy wrote: People can argue the Inflate/deflate issue until their heads explode. The facts as I see it is we are in a world of hurt and things are going to start sucking real bad real soon and what might be turning on a dime is the extent to which our personal freedoms are going to be infringed upon or straight out stolen from us by the regime that is controlling things right now. Unless something happens or someone comes along to stop this cascade of misery from unfolding, I'm with John. Batten down the hatches and get prepared in whatever way you feel you need to to weather the storm.
Deflation seems to happen when you go from gold and silver to just gold, or gold and paper money to just gold. But under pure fiat money I think the big danger is hyperinflation not deflation. If anyone knows of any double digit yearly deflation in pure fiat money, please post. I think there are on the order of 100 cases of double digit monthly inflation in pure fiat money. America alone has had hyperinflation twice already.
Has there every been a case of deflation of a pure fiat money during/after a war?