The investment community has become polarized into two mutually antagonistic groups; the inflation people and the deflation people. Each group has its fair share of prejudices, and such prejudices are often assumed to be held by any ‘inflationist’ or ‘deflationist’.

 

Here, I put forward the contention that – as a contrarian investor – one shouldn’t be ‘loyal’ to either side. Further, in defiance of the perception of an antagonistic stand-off between the uber-deflationists (like Robert Prechter) and Austrian hyperinflationists, I’ll outline the links between Austrian economics and Robert Prechter’s convictions.

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An update of the weekly inflation vs deflation indicator for 23/4/11. These indicators use google insights data to gauge the most consensual opinion in the famous inflation vs deflation debate. This week’s update shows that inflation worries continue to dominate.

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An update of the daily treasury statement charts for 22/4/11:

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