Christian financial author, Larry Burkett went home to be with the Lord in July of 2003.  I enjoyed his radio program and his financial advice.  Some of which I wished I had followed more closely.  I recently pulled his book The Coming Economic Earthquake off the shelf.  I wonder if Larry is yelling out one big “I told ya so!” right now?  I remember reading the book back in the early 90’s and when I discussed it with someone just entering the field of finance they poo-pooed it as the voice of another doomsday pessimist.  This criticism seemed to be justified with the seeming financial boom of the 90’s.  But those days are gone.

I offer the following quote from the book (keep in mind that this was written in 1991:

“It is quite possible we will see a deflationary cycle in America as the consumer credit binge reaches its limits.  If allowed to run its course, this deflation could help to restabilize our economy.  But in the face of ever-increasing federal deficits and falling revenues, it is more likely that the government will resort to even more credit, creating a massive inflationary spiral.

 

The worst of all economic situations occurs when production falls while prices soar.  This cycle, known as inflationary-recession can rapidly deteriorate into a inflationary-depression in the hands of inept politicians.”

 

[Don’t worry Larry, we don’t have any of those in office!]