Comment: Oh the misconception...

(See in situ)


Oh the misconception...

The CPI is grossly inaccurate because it doesn't measure things we NEED to by. That said, something Dr. Paul was most likely inaccurate on is that the US overall will see deflation when the SHTF(which is a good thing).

The Austrians have a narrow definition of money, but currently, leverage counts as money in the economy, as the leverage contract like a vicious rubber band, the economy will realize dramatic deflation.

The inflation we have been expecting is occurring now...Stocks, Bond prices, Metals, Food, Energy...but when the Leverage contracts and there is no real "non-credit" money anywhere, prices will be forced downward.