I think this statement gives us a much clearer picture of where Faber sits on the Deflation/Inflation debate. It is important to note that he is not necessarily making a short-term forecast for inflation, but points out that a key inflationary trigger will be real economic recovery (not the so called green shoots we have today). However, i have never actually heard Dr. Faber refer to the current economic climate as ‘deflationary’. He oftens cites the price of food, energy and insurance as evidence of our current inflationary environment. I suppose that there are some inflationary pressures out there now, because I can say honestly that I pay more for gas, food and insurance now than i did, say, 3 years ago.. But Mike Shedlock had a good article on the deflationary side of our economy that is worth reading to get a different perspective: http://globaleconomicanalysis.blogspot.com/2009/06/embrace-deflation-its-cure-not-problem.html

Mac