Chingo De Dinero

Everyone talks about inflation and slowing growth.  Well unless we have stagflation, which has always gone with commodity price growth, we are ready for some deflation.  At least that is the side I am on.  Oil is down, Copper is down, signs of decreased consumption is being shown.  This could be complicated if lending dries up, which could mean few loans for businesses and less production.  But, I doubt this is going to happen.  My prediction, minor deflation in the near future, then strong growth following.  Who knows what the fed will do, but for sure, it will affect the timing of the two.

I am not sure if this has changed over the years, but it seems like more lending is going to consumers and more deposits are coming from businesses.  This can be seen in the large amount of mortgages out there and the relative stregnth in corporate balance sheets.   If anyone has particular information, let me know.