I haven't written a blog for a quite a while but today I decided to write down what I am thinking and that may help you to decide on what and where to invest.

Many people arguing what we are going to face, inflation or deflation as we are living in an uncharted territory.  First of all, we wonders why so much money has been printed but we don't see any inflation at all?  Yes, the inflation seems away from us.  But if we think further, how could the rule of universe being tweaked so that it is not enforcing anymore?  The analogy to this phenomenon is let say you are trying to block a flood with brute forces, at the beginning you may have some success, however eventually you won't be able to compete with the power of nature.  Once that happen, you won't have any force to run from the flood which means you could have save your life earlier and you chose the way to against the universe and die.

The first monster came out of the cage where the cage door was broken by credit crunch, the monster here we call it deflation.  Because people don't have enough money to buy and the economy cannot be sustained because of shrinking consumption.  This is because we have been done wrongly in the past to borrow our future money and spend hell out of it while the rest of the world suffering and China people work day and night.  Instead of paying back the debt, we borrow even more money and spend to keep our life at the same level in the past.  What would be the consequences if we keep doing it?  Eventually no one will sell us goods for out so called paper money because of over supply.

Our smart solution is to create even more money out of thin air like God and spend on some nonsense industries, health care (would you care about health care reform if you have no money to buy food?), fixing road/bridge (can we doing something more critical please?), build railroads (yeah finally we know that we need it and because of China building it, we are just a copy cat).  We used inflation to cure deflation, they let the inflation monster out of it's cage (once open the cage door, it is much harder to catch and put it back) to fight with the deflation monster.  Eventually, the inflation monster will win the batter because of the endless bullets.  Can you imagine someone keep drinking Red Bull to keep his body awake and continue to work for a week instead of letting him to sleep?  Eventually his body collapse just like our USD.

For more information, please visit:

Why Bob Prechter Is Wrong on Deflation: Ben Bernanke "Wants Inflation"

Gold Breaks the Rule

Want to see stock trend for a particular stock?  Try our trend model here.

Have a good weekend,

Nameless Hero