Right now, deflation is a concern for the economy. Prices are falling and credit is restricted. However, the government is on the verge of a massive economic stimulus package, and that means that more money will be injected into the system. More money means that the value of your dollar — its purchasing power — is reduced. When we start getting flooded with dollar, it means inflation is a very real possibility.
Protecting yourself from inflation with TIPS

If you want to preserve your purchasing power, you can make investments that protect against inflation. One of those investments is in Treasury Inflation-Protected …read more

I received this interesting question from a reader last night:
I’ve been hearing a lot about inflation lately. But now I’ve started to hear about deflation. What is deflation?
An excellent question! At its most basic, deflation is a fall in prices. It is the opposite of inflation. In the sense of this economy, deflation is most connected with the stock market and with housing prices — both of which are falling. (Consumer prices haven’t quite reached a state of deflation, so it’s not very helpful to household budgets.)
One of the biggest worries right now is that the economy will enter a …read more