Interview with Jim Puplava, by Jeff Clark, Casey Research

The CEO of Financial Sense News Hour, Jim is a man you should listen to carefully if gold factors in your portfolio or if you are thinking about adding gold anytime soon.

In this interview, Jim talks about how the dollar affects gold prices.

He discusses whether we are moving into a phase of deflation or inflation and gives his views on what exactly that will mean to gold investors.

He discusses the likely impact of inflationary or deflationary forces, which one he believes will win out, and the effect it will have on our economy.

Finally, he makes a very interesting prediction.

Of course, any investor will tell you that deflationists and inflationists have been arguing for years.

Each side has data to back up its claims, so investors end up none the wiser and non the wealthier. All the arguing simply causes confusion, and that invariably that leads to inaction.

One thing they can’t argue about though: A defining moment in the deflation versus inflation argument will present itself when our current overburden of debt finally blows up.

On the one side, deflationists will point to periods in history where deflation resulted from that overburden.

But as always, there’s more to the argument.

Jim emphatically states:

“The outcome depends on whether or not the economy is operating under a fiat currency system, because there’s never been a deflationary depression when one’s been in place.”

Interesting.

When I saw this claim, I wanted to hear more, because deflationary forces seem strong at the moment.

I asked Jim for a chat about his viewpoint.

I wanted to get as clear as possible as I could about Jim’s thoughts on deflationary pressures, because it has direct and significant implications for investments, including gold, something all my readers care deeply about.

Here’s my candid interview with Jim.

via Gold, Inflation, Deflation; How to Know and What to Expect | Not Another Average Joe.