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Heavy-Handed Politics

"€œGod willing, with the force of God behind it, we shall soon experience a world
without the United States and Zionism."€ -- Iran President Ahmadi-Nejad

Sunday, December 21, 2008

Can Inflation and Deflation Coexist?, Part III

By Robert Ringer

Right now, we're in a deflationary period, which, as I have explained, is a good thing for the economy long term. It cleanses the market of excesses and forces people to be more frugal, more prudent, and more rational in their planning and spending.

As I shared with you in Part I of this article, my friend, Leo the Centimillionaire, believes it will be several years before the government prints its way out of the deflationary hole it has dug for us. He could be right ... or he could be wrong. For all the reasons I've previously stated, it's simply impossible to predict the timing of economic events in an economy that is artificially manipulated.

Still, so long as we're in a downward spiral, certain kinds of businesses will be especially vulnerable, but others will actually do quite well. I don't make predictions. I only make educated guesses. And following are some of my educated guesses about the near-term fates of a sampling of businesses as living standards decline.

Please Click Here to read the rest of Part III.


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