Deflation?

[stag15]

Are there any on here that think deflation is still going to play out? Do you have any good sources/articles/historic documents explaining why we will still have deflation despite the money printing/interest rates/bailouts/etc.

[swirling_vortex]

That way I look at it is you can print all the money in the world, but it doesn't make a difference if no one (except the government) is using it. Inflationary forces will pick up when the economy picks up, although Obama's really pushing the envelope here.

[Brian4Liberty]

Bubbles pop. People lose jobs. Less money in the economy to be spent. Demand decreases. Prices go down. Even printing money can't help if there is no way to inject it into the economy. Thus Ben's famous last resort: dropping cash from a helicopter.

[Zippyjuan]

I think we are pretty much done with deflation for now- unless the economy takes another nosedive. Companies were slashing prices to try to get rid of excess inventory which was not selling near the end of the year and by now they have unloaded most if not all of that and have adjusted their production to lower levels to compensate for the lower demand.

[enjerth]

I believe there will be more short term deflation as interest rates shoot up, probably limited to large purchases that require a loan. As your paycheck is the last thing to rise with inflation many people won't be able to afford current house and car prices as the cost to borrow rises.

Other than that, mostly just inflation.