Deflation Has Arrived, The Economic Depression is Here!

Updated: Sept 30, 2008

Deflation has hit the U.S. economy! Commodity prices are falling faster than at any time since the commodity price index was established way back in 1956!

The Reuters-Jefferies CRB index, a widely-respected global benchmark of commodity prices, has dropped more than 23% since the end of June.

Why is economic deflation so bad? For two reasons - first it damages the economy and second once deflation gets going no one can predict how far it will spread and how much damage it might eventually cause.

Inflation makes you buy. If you know the price of something is going to rise over time, it pushes you to make the purchase. That's good for the economy.

But during deflation the opposite effect appears. If you know the price will go down next week - why buy now? The system rewards you to keep your money and stop buying everything except the bare essentials.

Politicians know that inflation can be controlled. It may climb to uncomfortable levels, but it can always be limited. It's a controllable monster.

But deflation is like a fire an arsonist starts - he never knows how far it will spread. For this reason deflation is much, much more dangerous than inflation. Politicians will do everything they can to push the economy in an inflationary direction and avoid deflation at all costs.

That's why our present decline into deflation is so alarming. Soon banks will be closing and massive layoffs will follow. Then comes the inevitable decline in government benefits, riots, job marches, arson and social unrest. Hard times are upon us.

Survive and thrive during the coming bad times. Get the facts - there's no other book like it. Order today!

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