Recently, I received an article by Alasdair Macleod, entitled "Economics of a Crash." It's an excellent overview of what's to come over the next few years.

In reading the article, I was particularly taken by this reference:

…we can more easily imagine central bankers being drawn into repeating the mistaken policies of Rudolf Havenstein, president of Germany's Reichsbank in 1921-1923. In predicting this final crisis for any country that treads down the path of government corruption of its money, the economist von Mises described its manifestation as a crack-up boom, the boom to end all booms, when ordinary people finally realise the worthlessness of government currency and dump it as rapidly as possible for anything they can get hold of.

Herr Havenstein is a forgotten man today, but he should not be. What he did as President of the Reichsbank in his day should not be forgotten, as the same conditions that existed in Germany back then are just around the bend once again.

With the coming market crash (what we've witnessed recently is just a preview of what's yet to come), we shall see significant deflation.