I could not go without writing a serious parody of the above original comedy series, so be prepared to enter this guide, which will hopefully offer a fraction of information in “the standard repository for all knowledge and wisdom”.
This planet has a problem – and has had this problem repeated throughout history – a problem that made most people living through it unhappy for pretty much all of the time…and this involved periods of inflation and deflation.
The objective of this article is to provide what I think is an accurate version of inflation/deflation and what to expect over the course of the next 8 years, based upon the Contracting Fibonacci Cycle. Time points will be identified, followed by charts illustrating Elliott Wave Analysis indicating why we are on the cusp of a major breakout in the broad stock market indices and commodities. This analysis runs counter to many deflationist views, which ties into the proposed definition that will be described. This guide will be subdivided into sections that are based upon names present within the 6 novels of the Hitch-Hiker’s Guide series.
As Per the Above Title
There are some deflationists who think we are in a period of deflation…one noted definition of inflation is “a net expansion of money supply and credit, with credit marked to market” and the opposite for deflation.
A problem with the above definitions is that they provide very broad definitions and often, these outcomes do not occur until a “Tipping Point” has been reached. Malcolm GladWell wrote a book titled “The Tipping Point” which I would strongly recommend everyone read. In a nutshell, different systems, problems etc. do not follow linear relationships but rather, a “tipping point” unique to a given system under study occurs. This unique “tipping point” changes the balance of things, causing an accelerated shifted shift to the upside or downside of a trend, based upon the unit of measure under study.
Applying this thought to deflation, many things happening in the news such as job layoffs, bankruptcies etc can overwhelm senses to provide an empirical conclusion that deflation is just around the corner.
The definition of inflation or deflation I propose is a scalar model that comprises the integral of all components (summation of the slope all components chosen to include in broad economic sectors and measures) based upon the derivative of their measurements (rate of change, as an example car speed (km/h, m/s) or money velocity). The derivative components of each part of the equation represent the rate of change for each chosen item by graphical representation to form a slope ($/month positive or negative) that has an assigned probability (R2). Each item added up can provide the integral, or summation as to whether or not inflation or deflation is evident as a whole across the economy. Examination of individual components offers visualized trending to determine whether or not a given sector or defined measure is entering deflation or inflation.
full article at source: http://www.marketoracle.co.uk/Article36061.html
- Coalition carbon tax claims deflated (smh.com.au)
- The Deflationists Are on Drugs! (sgtreport.com)
- Deflation: As Good As Gold? (safehaven.com)
- The Hitch-Hiker’s Guide to the Universe of Inflation/Deflation Over the Next 8 Years (safehaven.com)