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THERE IS HISTORICAL PRECEDENT FOR AN INFLATIONARY OUTCOME TO THE CURRENT WORLD FINANCIAL CRISIS

THERE IS HISTORICAL PRECEDENT FOR AN INFLATIONARY OUTCOME TO THE CURRENT WORLD FINANCIAL CRISIS

SO MANY ARE CONVINCED THAT DEFLATION IS AHEAD…WE ARE NOT CONVINCED

For years, a few have believed that inflation will be the long-term outcome. We have been among them. We mentioned months ago in our commentary that there would be short term deflationary influences within the U.S. and developed economies in the last half of 2010. Even though the developed economies are struggling to grow, and we predicted that there would be concerns about deflation, we want to reconfirm with our readers that our long-term view that inflation is looming in front of us…and history bears out our thesis.

Recently, the wise Jim Sinclair wrote and sent to his many readers an excellent piece on the subject of inflation being a monetary event. To read it, you can access it on http://JSMineset.com.

THERE IS HISTORICAL PRECEDENT FOR AN INFLATIONARY OUTCOME TO THE CURRENT WORLD FINANCIAL CRISIS

Parallels can be drawn from history with respect to the financial events that that the developed world is now experiencing. Below, please find a link to a lecture and presentation that discusses the role indebtedness has played in financial crises and monetary events of the past, and what outcomes we can expect from this current environment.

We view this work—which was presented earlier this year at the Niarchos Lecture at Peterson Institute for International Economics by Harvard Professor of History Dr. Niall Ferguson—as a well stated and strong historical endorsement of our long held views of what is occurring now. Dr. Ferguson has been getting a lot of press lately as he prognosticates the future based upon what has happened historically in world financial markets under similar circumstances. Here is the link to the transcript of Professor Ferguson’s lecture and to the slide presentation: http://www.iie.com/publications/papers/niarchos-ferguson-2010.pdf

Thanks for listening.


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