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Everyone has been talking about inflation in your face with oil going through the roof and what not. But this is pure BS. Commodity prices are collapsing and charts clearly show this ominous trend. Oil, Gold, the CRB index. Housing prices.
What does this mean?
Hang on to your cash!
Like a good contrarian You go against the herd sentiment.
What will accelerate the deflation?
The Chinese stock market is already in serious decline. This will slow down the Chinese economy and depress Chinese demand for commodities. The post-olympic bust is coming.
We are heading for a hard global recession.
There is a good chance the Chinese Communist party will go the way of the Russian one. This will have huge implications.
Enjoy the chart:
http://www.istockanalyst.com/article/viewarticle+articleid_1691755.html
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