After Marc Faber said he gives a 100% guarantee that we’ll have hyperinflation, and many other commentators singing from the runaway inflation songsheet as well, I have been waiting to see Mish’s counter-argument for continuing deflation.
Without even using the word, Mish has provided pretty stunning evidence for deflation at least in the short-term. Specifically, here is the first paragraph of an article entitled “Benefit Spending Hits $2 Trillion, Highest Percent Since 1929; One Dollar Out of Every Six From Vouchers“:
As economic conditions deteriorate and unemployment continues to soar, one in nine Americans are now on food stamps. Moreover, a staggering one of every six dollars of Americans’ income is now coming in the form of a federal or state check or voucher.
Note: I believe we will eventually have hyperinflation, and even Mish doesn’t discount the possibility. Just not yet.