Do you believe in Inflation and deflation?

As what Kiyosaki said in one of his audio, you only have 2 things in life which matters most. Time & Money . Invest in Time or Money and BUILD PIPELINES !!

So today as I was investing my time on some financial education I come across this paper clip from New York Times (yeah yeah not engineering specifications any more ..) which describes what is happening in Spain with regards to the current economic meltdown situation .

http://tinyurl.com/dhes5m

It may help us to understand what is happening to our fiat money which is circling al over the world.

As a retrenchee ( I kind of like this term somehow ...) the word 'deflation' is pretty new in my vocabulary. We know that if inflation rate is high , basically it means we need more cash to buy the same consumer goods or products. But the value of cash is still there to be hung on to, means our ONE RINGGIT is still valueable enough for us to enjoy teh tarik at the warung . Not so bad huh but if we were to undergo a deflation period , probably the glass that holds the teh tarik worth more that our ONE RINGGIT. And being an employee for more than 10 years (Ohh .. I loved my job so much ) there is a big difference having RM1000 in 1999 as compared having RM1000 in 2009 . Those were the days and retrenchment is far far out of the vocabulary especially for those working in big conglomerates and giant multinational firms .

There is a big old saying that says 'if my neighbour is retrenched it is a recession , but if I lose my job it is a depression' . Are we in recession ? Yes ...and are we moving to depression ? Hmm..not yet maybe . I do not know . But how do we prepare ourself for it ? Tough question ..the same question was always in my mind those days when the idea of having MSI (multiple streams of income) struck my engineer's mind. Well ...although the action towards MSI is still on-going and I am yet to reap the rewards , at least mind-wise the preparation was there .

Equip ourself with knowledge, widen the horizon of knowledge , know the trends in K-Economy and pray hard .

Have a nice working day ahead.