It is a pretty bad state of affairs when third world countries can't print money fast enough to keep up with the United States. We may very well be in deflation in the U.S. right now but we ARE going to have inflation and it is not just going to be just in the U.S. but world wide.

When countries are racing to the bottom to devalue their currency, what does that say about the purchasing power of those paper currencies in the future? It can't be good. Paper currencies in our life times may have a value of an equivalent amount toilet paper.....and be used for the same purpose.

All those dollars central banks are buying to try and prop up the U.S. Dollar and devalue their own currencies will some day come home to roost. As they give up trying to devalue, there will be more and more disgust of using the USD as the currency of choice for world trade. As the dollar becomes less important for trade there will be less need for central banks to keep a supply of it. When they no longer need much of it, they are going to look for a place to dump what they have and buy something tangible with it. Eventually that means it has to come back to the U.S. as fewer and fewer want to hold it. Read into that what you want concerning commodity prices.

With all countries running the printing press trying to devalue their currency that means inflation world wide, eventually. With the USD loosing world wide use and the dollars repatriating, that means colossal inflation in the USA, eventually. It may take a while to get the snowball rolling, but when it starts to roll, you had better be out of its way.

John