Get used to higher prices…

An interesting and informative article about inflation pressure by Bill Fleckstein at MSN Money. Here’s the mony line.

“I believe inflation will be with us for quite some time. Only when money printing leads to a collapse in the dollar or in the U.S. Treasury market will there be any possibility of the asset-market declines we face actually turning into the deflation that so many people still seem to expect.”

The inflation/deflation flap is a complex subject with deflation being the far worst outcome - should it occur. For us technical analysis types we most often don’t think much about the macro relationships between fiat currency, comodities prices, and the seemingly irresitible urge to keep the run button pressed on the government printing press.