Wednesday, June 13, 2012

People are starting to use that word....

Deflation.

I continue to believe there is a resistance level for gas at 4.50 a gallon. Each and every time we hit that - the economy goes into contraction. I said it here and a couple of other times. I don't feel like finding the links.

I believe that when tax time came around, people had so much recession fatigue they went out and spent money. You know why? When I did a rough draft of my taxes and realised I was getting a big fat refund, I thought now maybe I could put a down payment on a truck. Within a week, I was scared shitless. And by the time it was deposited in my account I told Mr S. - I don't feel a bit better.

I don't believe I am alone in these feelings.

Now the funny question - inflation. You can not outrun it forever. Yet, we have this gas ceiling. It's obvious the economy can't withstand gas above that level. Or at least, it has yet proven it can.

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