Allow me to enter (briefly) into the fray of inflation v. deflation. For the most part, I hear about deflation. I see 10 year yields with a two-handle. I see very disappointing housing data. What I also see is a US treasury market and US dollar that were able to buy some time because it seems that much worse on the other side of the Atlantic. I don't experience deflation in my real life. I understand that deleveraging cycles should be deflationary. But, I also think that such an outcome is premised on a system that isn't rigged, where bailouts and moneyprinting don't prevent nature from running its course. Once Uncle Sam stepped in, what should've happened was no longer what will happen.
Ultimately, the problem will be inflation. That's my opinion. I've bought a lot of gold, and not because it's in a bubble. The path ahead will be bumpy, but I feel comfortable with that position.
As an aside, it's been on my list of to-dos to try and connect with the beautiful game. 2010 World Cup has been that opportunity. I have probably watched 90% of the matches (thanks to ESPN), and think I am now a convert. While it would've been nice to have the US advance (and their draw was pretty favorable), there is still much to enjoy. Big fan of Diego Forlan -- although I don't expect Uruguay to get past Brazil (or the Dutch, I guess) in the semifinals, he is a very exciting player to watch. The only question becomes how to carry over this new interest once the World Cup is complete. I recently watched a Red Bulls match, and it seemed like a middle school team compared to what's in South Africa. I guess the next step is figuring out how to follow La Liga and the EPL.
