Deflation Chatter Resumes

With all of the worse than expected reports out of China and the Euro Zone, the talking heads are all screaming deflation again. The simple fact is that we will see the money multiplier rise again soon and it will cause inflation. The deflation talk presents a great opportunity to buy commodities. I bought some corn yesterday and am loving the pullback in FCX.

Deflation will be a short term price movement, and inflation will be the long term phenomenon. I expect to see the dollar continue to fall and that will catch the deflation crowd off guard when the multiplier actually grows.

Am having technical difficulties and will have longer post later.