Wednesday, September 30, 2009

Deflating Christmas

I still think we'll see a massive deflation and that right soon. I agree that hyperinflation will come, but only after the debts have been destroyed by deflation and there is no credit system left to worry about from the hyper type of inflation. But I could be wrong.

Until then, there may be a few silver linings in the deflationary clouds:

Wal-Mart supersizes its $10 holiday toy program
By Nicole Maestri
SAN FRANCISCO (Reuters) - This year, Wal-Mart Stores Inc is supersizing its $10 holiday toy offering.

Last October, the world's biggest retailer cut its prices and began selling 10 popular toys for $10 each in its U.S. Walmart stores to win sales from early bargain hunting holiday shoppers.

This year, the retailer has ramped up the program and is offering more than 100 toys, including Barbie dolls and board games, for $10 each, throughout the Christmas shopping season...

1 comment:

Mike said...

I agree that we are going to get deflation, because of the massive contraction in credit that is occurring, and the lack of demand by the consumer. As such, I think one of the few ways to prosper from this is to invest in gold mining companies, because their inputs costs will continue to decline, while I believe the gold price will do well in deflation, similar to what happened during the depression. I recently read some good articles on these topics at that discuss the government's role in the economy, and specifically how the Federal Reserve's money printing policies are contributing to currency debasement and eventual inflation. It also discusses other implications for the dollar, the gold price, and gold mining companies leveraged to the gold price.