Inflation or Deflation?

By: Ian Campbell | Wed, Jun 13, 2012
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Why Read: Because whether we are going to be faced with inflation or deflation in the developed countries, and the world economy generally is a critical question - and one that affects not just investors, but everyone.

Featured Article: In a recently published article Michael Pento (Pento Portfolio Strategies), said to be an Austrian School of Economics specialist, says (among other things):

Commentary: Mr. Pento concludes his article by saying that:

Mr. Pento has to be right in a number of the things he says. In particular that:

That said:

One might think of the world as an 'economic 190 egg 'scrambled egg mixture' that continues to be beaten, and hence is a work in progress until it is put in a pan and cooked. In the end, the 'proof of the omelet is in the eating'. From 20,000 feet, it seems reasonable to think that:

Mr. Pento does not venture a specific opinion as to whether in the longer term world inflation or deflation is likely to occur. That is sensible on his part, given the seemingly limitless number of permutations and combinations of things that might happen in our ever more complex economic world going forward. His views are very relevant to short term changes that can be observed and acted on in an investment/trading environment.

You ought to read Mr. Pento's article, this commentary, and everything else you can get your hands on - then reach your own conclusion(s) with respect to the likelihood of an inflationary or deflationary environment as things unfold.

Answer to the Most Important Question Facing Investors Today
Source: King World News, Michael Pento, May 20, 2012
Reading time: 4 minutes

 


 

Ian Campbell

Author: Ian Campbell

Ian R. Campbell, FCA, FCBV
Economic Straight Talk

Through the Economic Straight Talk Newsletter Ian R. Campbell shares his perspective on the world economy, the financial markets, and natural resources. A recognized business valuation authority, he founded Toronto based Campbell Valuation Partners (1976), Stock Research Portal (2007) a source of resource companies market data and analytic tools, and Economic Straight Talk (2012). The CICBV* annually funds business valuation research in his name**. Contact him at icampbell@srddi.com.
* Canadian Institute of Chartered Business Valuators
** through The Ian R. Campbell Research Initiative

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