By Bill Downey - July 2009

Who would have thought that the information age would be so confusing?  Given the same set of conditions, man has this tendency to find different interpretations of the same data.  For instance, there is a huge inflation/deflation debate going on.  The problem (for some of us) is that both sides can and do give good argument for their respective side.  When I read a good deflation article, I am convinced that it will be so.  That is, until I read a good inflation article.  Then I tend to start thinking inflation again. 

For those who are just beginning their foray into the investment world of gold, answering that question correctly is going to determine whether you’re the hero or the goat.  While I will not argue the merits of each side, is it possible for one to determine whether he wants to live in an inflationary or deflationary world?  Obviously perspective can mean a lot, but I think we can make the case that if one would rather live in a deflationary world where prices go down over the long term he can do so by simply choosing the correct vehicle to maintain his purchasing power. In fact with good timing he/she can even enhance that power.

For those of us on the fence in the inflation/deflation debate let’s take a peak back and re-visit the events leading to the day the dollar died. Then let’s see if we can tie it into what is going on today.