Yes, I watched that one a while back. He gets a lot of things right but in my opinion both he and Mish get the deflation part wrong. And it is only an opinion on my part. I am no expert by any means.

To answer your question the best I can:  "how can one have demand based inflation with falling currencies that buy less and less of a product?"

I don't think we have demand based inflation. I think we have Fed created inflation of the money supply. The demand part will only come into play when people loose confidence in the currency and try to trade it for hard assets that will not devalue. That will happen when the purchasing power of the money starts to fall, as it is now. It will not be real noticeable to the average non-investment type person until imported stuff they have to buy starts raising in price because of the lower value of the money (so it takes more of it). Traders and investors are already seeing it in commodities. Oil is about the only one to not show it much yet. I think Mike Maloney has it dead wrong on oil. My opinion is we at BEST will have stagnant prices on oil for a couple years. My fear is that we will be above $100 soon. Don't know about in your area but gasoline prices are rising around her, not falling.

The latter part of the question "falling currencies that buy less and less of a product" is a contradiction to me. That is exactly what inflation causes, the lower value of the currency takes more and more of it to buy any given product. In other words, prices on stuff rise. So to me it sounds like you are saying, how can we have inflation when we are having the results of inflation (lower money value/higher prices for goods). So your question confuses me because it sounds like you are making my argument for inflation while saying it can't happen. I'm confused.

Like I said, I'm no expert, and there are lots of people ( the majority of economists for example) that disagree with me. The good part is, as of today at least we are mostly a free nation free to make our own decision on what we need to do to protect our wealth. Best of luck to everyone on this forum. I by no means have all the answers. Just trying to figure it out like everyone else.

John