re: Interesting Article from the Oracle of Ohama

quote:

---

Today people who hold cash equivalents feel comfortable. They shouldn’t. They have opted for a terrible long-term asset, one that pays virtually nothing and is certain to depreciate in value. Indeed, the policies that government will follow in its efforts to alleviate the current crisis will probably prove inflationary and therefore accelerate declines in the real value of cash accounts.

---

So Buffett is saying the government actions will lead to inflation, which was my uninformed opinion as well. I remember a thread a few weeks back where some were suggesting that we were likely to see deflation... is that still the opinion of most here? Or have the governments actions made that unlikely at this point?

Also, what are the chances that wages will more or less keep pace with the predicted inflation?