It’s one or the other.
The only catalyst I see for period of deflation ahead, would be a contraction in multipliers starting anytime this year or next, kick-ed off by any possible combination of headline risk and psychology. This problem will of course, be finite, with a feed-back loop that could put North America back into a 2008-like job-shedding race. However, I don’t see it being permanent in the long run. I actually see the masses voting for completely socialist policies which would push the last job-creating innovation-driving capatalist, over the edge. It would be a litteral race to the bottom, and probably a top in the RATE of money printing, for probably a couple decades.
Energy will add to the feed-back loop problem.
The scenario I just conjectured is just one of many 5 to 10 year outlooks. The alternatives, are all just a question of how much devaluation, and how much growth, will we see. Both of these, bode well for commodities, stocks, and real-estate in the long run, like they have for the last century. If North America could switch to a cheaper energy source, before market forces, force their hand, this would become a competitive advantage. That’s happening in Ontario, right now. That has me very excited, to see the competitive advantage being grown, right in my back-yard.