It is nice to be able to find another article and short video for you to read and listen to that I agree with mostly. I disagree with the part that says deflation is unlikely. I think deflation is already here and these guys are kidding themselves on that one point.

 

Every month, every day, every week, every hour, every minute, and every second our economy and investments continue to experience deflation our governement is literally dumping money into our financial infrastructure. [That is my best imitation of Johnny Cochran.] I believe we have been experiencing a deflationary environment for about 3 months now. 

 

In that time the goverment has signed a $700 billion and a $300 billion agreement that will pump a total of roughly $1 trillion into our economy. They have already lowered interest rates 25 basis points and will probably lower them more in November. 

 

The most important point in this article and video is that:

Yes we are currently experiencing deflation, however while we are deflating the government is fast at work pumping more money into our economy than has ever been done in any society in the history of man's existence (this is both a fact in dollar terms and percentage terms). And this action by the fed will continue until we inflate. The longer they pump money into our economy the more it puts pressure on the price of commodities to go up and the value of the dollar to go down. The US could get as pitiful as the South American goverments years ago as they had true raging and hyperinflation.

 

Click below to read the short article and view the 4 minute video:

The longer this deflation continues the more severe and rampant inflation will be in the future because of the amount of money being pumped in every day by our elected officials. I have written about it for years and many of you are starting to talk with me about it and that is the importance of being out of debt.

 

Please keep it simple so you don't have to worry so much:

1) Get completely out of debt.

2) Give money away as God directs you.

3) Pay your taxes.

4) Make sure the savings that has been entrusted to you is at least earning interest (Matthew 25:27), trading (Matthew 25:16) , or diversified (Ecclesiastes 11:2).

 

Most Americans and people in the world wish they were out of debt and had the luxery of worrying about whether or not their retirement savings were up or down $200,000. Wow! Fortunately, God loves us inspite ourselves. Jesus is proof of that.

 

Sincerely,