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Tag Archives: deflation
Ex-Plunge Protection Team Whistleblower: “Governments Control Markets; There Is No Price Discovery Anymore”
Ex-Plunge Protection Team Whistleblower: “Governments Control Markets; There Is No Price Discovery Anymore” One year after the great stock market crash in 1987, US President Ronald Reagan launched the “Working Group on Financial Markets.” Conspiracy theorists believe, however, that the real task of this committee is to protect against a renewed slump in the stock […]
The “Liquidity Glut” Springs Eternal: Global Central Bank Easing Quadruples In 2015
The “Liquidity Glut” Springs Eternal: Global Central Bank Easing Quadruples In 2015 Thanks to global disinflationary pressures driven by the savings glut, an oil glut, and universally high (peak) debt levels (crushing the transmission mechanisms of textbook economists), central planners have gone full ease-tard in 2015. From a ‘balanced’ 10 easing, 9 tightening bias (~1:1) in […]
Fears over deflation thwarted Bank of England vote to raise interest rate
Fears over deflation thwarted Bank of England vote to raise interest rate Falling oil prices driving inflation down to 0.5% in January, forced Martin Weale and Ian McCafferty to back down Fears that Britain could sink into a damaging “deflationary spiral” have stayed the hands of Bank of England policymakers who had pushed for an early interest […]
Debt As Wealth; The Caution of Unfit Past Experience
Debt As Wealth; The Caution of Unfit Past Experience With the G-20 recoiling itself back into the same kinds of mistakes made in the 1960’s, leading directly to the Great Inflation, we will have to take into account the other end of that, namely other forms of “stimulus.” With the global economy sinking, and worries about […]
A New Red Flag for Our Rosy Economic Scenario
A New Red Flag for Our Rosy Economic Scenario Wholesale inventories balloon to Lehman-Moment levels. A lot of economists, particularly those quoted in the media, claim that rising inventories are a sign of confidence, that merchants believe that the future is rosy, that sales will be good. There is some truth to that. Merchants stock […]
“We Just Need To Print More Money” Bank Of Japan’s New Board Member Clarifies Endgame
“We Just Need To Print More Money” Bank Of Japan’s New Board Member Clarifies Endgame The Abe administration nominated a major proponent of reflationary (inflationary) monetary policy to the central bank’s board, buttressing Governor Haruhiko Kuroda’s efforts to save the nation from the dread of deflation. As Bloomberg reports, economist Yutaka Harada, who will replace Ryuzo Miyao, […]
The Beauty of Deflation
The Beauty of Deflation Deflation Paranoia The euro zone’s consumer price inflation rate declined below 1% in early 2014, getting closer to zero during 2014, nowhere near the ambitious 2% benchmark set by central banks. A further small downward adjustment in the inflation rate has put it into negative territory, so harmonized euro area consumer […]
Oil-led deflation can be good, bad or ugly
Oil-led deflation can be good, bad or ugly Not all deflation is the same. In this case, cheaper oil wears the white hat — for now When you fill up your car with cheap gas, there’s a group of economists who just hate it. That’s because in many parts of the world the biggest worry for economic […]
Oil and Real Estate Bubbles in Canada: What Goes up Won’t so Smoothly Come Down
Oil and Real Estate Bubbles in Canada: What Goes up Won’t so Smoothly Come Down Five years ago, I noted how unsustainable Canadian economic growth is fuelled by debt, which is leveraged to increase the prices–and ‘profitability’–of assets like oil holdings and real estate. It might as well be called “phantom growth,” because it’s bound to disappear […]
Fear And Dread Of Deflation—-The Keynesian Big Lie At Work
Fear And Dread Of Deflation—-The Keynesian Big Lie At Work The fear of deflation has become the cornerstone of Keynesian economic thought. A lack of inflation has been used to explain periods of economic weakness from the Great Depression of the 1930’s, to the Great Recession 2008-2009. And now, that philosophy has been adopted as […]
All eyes on Fed, Greece after ECB fires bazooka
All eyes on Fed, Greece after ECB fires bazooka PARIS (Reuters) – After the surprises from central banks which rocked markets at the start of the year, the U.S. Federal Reserve will be watched as closely as ever this week to see that it doesn’t stray from its own policy path. The atmosphere will already be […]
How China Deals With Deflation: A 60% Pay Raise For 39 Million Public Workers
How China Deals With Deflation: A 60% Pay Raise For 39 Million Public Workers While the rest of the developed world, flooded with re-exported deflation as a result of now ubiquitous money printing, scrambles to print even more money in hopes of stimulating the economy when all it is doing is accelerating a closed deflationary loop (at […]
Low inflation should not be feared, says George Osborne
Low inflation should not be feared, says George Osborne The sharp fall in the UK inflation rate should not be feared, Chancellor George Osborne will say in a speech later. “We should not confuse this welcome news with the threat of damaging deflation that we see in the eurozone,” he will say in a speech. […]
Deflation and the eurozone: why falling prices aren’t always good news
Deflation and the eurozone: why falling prices aren’t always good news As oil prices continue to fall, a strange phenomenon is making its presence felt across Europe: deflation. Familiar in Japan since the 1990s, consistently falling prices for the goods we buy are almost unheard of in Europe, not seen since the grim years of […]
The Achilles Heel of the Global Status Quo: Deflation
The Achilles Heel of the Global Status Quo: Deflation Rather than being the Monster Under the Bed in central bank nightmares, deflation is the natural result of a competitive economy experiencing productivity gains. That the global Status Quo is terrified of deflation is the background of every policy decision and official PR sound-bite. The reason behind this unremitting […]
