SOS Two schools of thoughts

The two major schools of thoughts in Economics are:

1. Hyperinflationist
2. Deflationist

Both is actually right, it is a matter of timing. The Hyperinflationist says it is going to happen soon (1-3 years). The Deflationist says deflation is going to happen first i.e. 1-3 years, then only Hyperinflation will come much later 3-5 years from now. Their differences actually arises from the following:

1. printing of money
2. evaporation of credit

The deflationist is of the view of the evaporation of credit is much faster pace than the printing of money or creation on new credit. The school of hyperiflationist: Jim Rogers Peter Schiff Marc Faber The school of deflationist: Robert Prechter
Gary Shillings Steve Keen Mike Shedlock Hence, the investment strategy should be OPPOSITE for both schools of economists. MyView Robert Prechter and Gary Shillings and Steve Keen views are more convincing because the DEBT level from conventional housing and commercial loans as well as derivatives is far larger than the Government can handle from printing of money i.e. the implosion of bad debts is far greater than the printing of new money. On top of that, one has to acknowledge the following that drives the economy:

1. changes in unemployment level
2. consumptions capacity (depends on household debt level & unemployment)
3. prices level of housing (long term) and commercial properties
4. changes of bad debt for derivatives

Should the above four factors cannot improve on a SUSTAINABLE level, we can conclude that DEFLATION will come first and Hyperinflation will sets it many years later.