Here is Steve Saville getting right to the heart of a lot of the analysis and commentary you read here: The Coming Deflation Scare. In this article he articulates in his usual level headed fashion the dynamics at play between those two words that we see all the time - in bright neon letters - inflation and deflation.
Reading stuff like this is not as sexy as reading about nefarious and clandestine groups manipulating the markets to their advantage and our detriment. No, in fact it is kind of boring reading about true money supply growth, inflation expectations and commodities moving back "into line with the monetary backdrop". Saville consistently gets less readers by my analytics than some of the more dynamic writers I publish, but I think the stuff he writes - in the big picture - is very helpful and grounding. It is so simple that the majority of the financial world misses it. Simple as 123 in fact; The Fed is an agent of inflation. The Fed tells us that they are inflation fighters. The Fed needs the cover of the fear of deflation to do what their entire history tells us they always end up doing... IN FLAY SHUN.
