Depression in the USA - Deflation verus Inflation

[Hoop]

A good Sunday read here http://www.marketoracle.co.uk/Article23427.html a quality post spoiled unfortunately by a big headlined advert by Robert Prechter ...ironically further down this post when the DOW gets mentioned Nadeem Walayat has a crack at the permabears ..The whole summer has seen the perma-bears and the BlogosFear busy confusing what amounts to propaganda with analysis as they took a pre-existing WRONG conclusion and then search for data that supports it... .

One of the more balanced posts probably because its not from the USA. Not surprising as Nadeem Walayat wrote this post (he is the Editor of The Market Oracle)
Its rather technical but has a lot of his views

Quote:.....All of the above mentioned countries consistently run huge trade surpluses against the US Dollar, which should in a free floating (falling) currency market result in a greater rate of descent for the US Dollar as a consequence of the trade imbalances, but especially China is refusing to allow these imbalances to correct themselves, instead China sees primarily the US Consumers (Mall Zombies) as a prime driver for China's economic growth even if it means they ultimately suffer huge losses on their $2.5 trillion of reserves, which given the big picture is a small price to pay for Chinese GDP doubling approximately every 8 years to now stand at $5 trillion annually.....

....The manifestation for this lack of competitiveness is the trade deficit. It is NOT the fault of the Chinese that the trade deficit exists, it is the fault of the US consumers who BUY CHINESE and JAPANESE JUNK!.....