Mike "Mish" Shedlock, financial analyst at Sitka Pacific, and Dr Marc Faber (Thailand-domiciled investment guru and economic commentator) are thought to represent opposite points of view - deflation versus inflation, respectively.
In this interview, it's clear that to some extent they agree: the US Government will see huge budget deficits for years to come, and it's not going to be a re-run of the 1970s: there is no ability of the people to take on more debt because (as Mish says) we've now gone from 1- to 2-wage households (where work is available).
Faber accepts that the government may eventually choose to default with respect to foreign creditors, but otherwise he sees monetary inflation to cover the public funding gap and stimulate economic demand. Mish sees price rises as compatible with his judgment that the economy will deflate.
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