Sunday, August 15, 2010
While economists argue about whether the country is headed for a period of inflation ( an increase in the cost of goods and services), or whether an extended period of deflation ( a decrease in the cost of those same goods and services) is just around the corner, it is important to understand that both are bad news for the consumer. A reduction in costs (deflation) might seem to be attractive, but long term it threatens to result in a cut back in manufacturing and production, a loss of jobs, and possible shortages of goods across the board. Worst of all, they can both be happening at the same time as government attempts to control the money supply. There has never been a better time to get out of debt, and add to your supply of commodities essential to everyday living. Pay attention to economic news, keep an eye out for price movements, and do something every week to strengthen your family’s situation.