From The Daily Bell Forum:

Posted by Charly on 8/8/2010 3:07:01 PM

Deleveraging [Deflation] or Inflation?

My experience tells me:

My $35 hourly wage today is less valuable than my $7.50 hourly wage 40 years ago.

Recent Prices have deflated only in certain specific sectors, such as real estate, equities.

Everything I buy 24/7, gas, food, clothing etc.[cost of survival items] has inflated 20% ” 75% in the past 12 ” 36 months.

My SS income payments have decreased in the past 24 months, effectively causing me personal inflation.

The value of my cash, [savings] has continued to lose value [deflate], which is actually inflation to me. Any G & S that I have acquired has increased in value consistently since acquired.

The velocity of $ has definitely slowed, and lending has dried up in spite of all the $’s the thugs have showered their banker buddies with.

The supplies of necessities and durable goods are bound are bound to become more scarce before to long, which should inflate prices more, driving the dollar value lower.

Not a pretty picture.

Thanks for the fine reporting and the interesting forum.

Cheers, Charly