deflation= slack in the economy.. not booming building.....stagflation is different than defaltion.. deflation==== nothin worth shit....gold possibly....but that would be out of fear.....u want inflation for metals..and fear.
Its not whether or not I want inflation for metals due to fear, it is how one can profit from deflation and where one should go during times of deflation as investors.
There are, have been and will continue to be great debates re: inflation/deflation, nore will fear and greed vanish from the markets. I see hidden signs of deflation in our future. Signs of deflation emerging in the quality of bank deposits, loan availability, commercial real estate, consumer credit, the municipal bond market. Ask yourself, are the banks lending more and are the recievers of credit (you and I) taking on more debt? My answer is NO, actually we are payng down debt, thanks to the banks and their greedy ways of deceit. I don't think I have to spell that out for you, we all know what is happening to card holders.
We know the feds will not raise interest rates until min. 2 or 3Q 2010, the banks know it the world knows it. A sharp decline in consumer credit since mid 2007 is deflationary in its own right never mind what I mentioned previously, but regardless I'm getting a tad long winded in my theory for deflation.
I think this may answer your question as to where I'm comming from, but the question still remains, how do we as investors gain in a deflationary period.