The causes of deflation are connected straight to inflation and the only cure for inflation is a deflation. The following is a list of causes of deflation and symptoms of deflation leading up to the GREATER DEPRESSION that began in 2000 and might not end until 2020 (end of the mania).
41. Disintermediation. Borrowing short-term cash to reverse and provide it longterm. If rates of interest go up quicker on the short-term cash than the loans they have made with the cash, they are captured again like what occurred during the savings and loan crisis back in the mid 1990's.
Residential or commercial property worths are spiraling downward in the face of competitors by low priced brief sales and banking trends lending institution resales of homes that they foreclosed upon.
12. PIIGS. Portugal, Ireland, Italy and Greece. Ineffective government causes high unemployment triggering spreading malaise in Europe and a dispersing banking and labor crisis.
High petroleum costs sucking money out of individuals pockets that might have gone to purchasing items and services in the market. We are all on an oil food chain utilizing dead dinosaur deposits for our energy instead of whale blubber like we we utilized to. Cash sent to foreign entities that sometimes is utilized to pay for attacks on us. Inefficient gas guzzling cars, home appliances, lighting and phantom loads on TVs, computer systems, microwaves and so on. Heat rises right? Why is are the working parts of fridges below the location suggested to be cooled. Heat rises up through the whole refrigerator or freezer box. A waste of trillions of dollars in oil all these years.
60. Commodities prices dropping. Oil, lots of grains, lumber, silver, copper etc. dropping in price. Housing and automobile manufacturing utilize a lot of copper. Down trends.
Sometimes even medium- and shorter-term trends are more obvious. This is specifically true on the downside. Such click is the case with the infant boomer driven economy today.
Another way to approximate the capacity of a silver investment, is to look at the supply side. Silver is anticipated to encounter extreme lacks due to the fact that of the mix of its increasing industrial use and increasing investment need. You would be shocked to discover just how much industries are utilizing silver as a basic material in production products. Silver is all around you: your laptop computer, smart phone, gems, light switch, your vehicle, mirrors, solar panels, batteries, electrical items like TELEVISION or washing maker, etc.