Money Model

Weve got nothing to eat
We got nowhere to work
Nothing to drink
We just lost our shirts
--Rolling Stones

Just ran across this Feb discusssion on deflation by Mike Shedlock. One of the more cogent missives I've read on why deflation will trump inflation, even in the midst of massive 'money printing.'

The bottom line is that credit is contracting faster than base money is being created. The sheer volume of debt out there, which counting its derivative forms is in the hundreds of $trillions, almost guarantees that this trend won't reverse anytime soon.

The toothpaste is out of the tube.