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Tag Archives: deflation
The Coming Financial Crisis of 2021
The Coming Financial Crisis of 2021 Economist Steve Keen issues new warning Economist Steve Keen predicts that even if the covid-19 health crisis subsides next year, a brewing financial crisis on par with the 2008 Great Recession is in the making. He sees the pandemic as having delivered an “unprecedented shock” to the global economy, […]
Inflation, deflation and other fallacies
Inflation, deflation and other fallacies There can be little doubt that macroeconomic policies are failing around the world. The fallacies being exposed are so entrenched that there are bound to be twists and turns yet to come. This article explains the fallacies behind inflation, deflation, economic performance and interest rates. They arise from the modern […]
Is High Inflation Now A Bigger Danger Than A Deflationary Crash?
Is High Inflation Now A Bigger Danger Than A Deflationary Crash? What’s the more likely event at this point: a deflationary crash or runaway inflation? For a long time, Peak Prosperity co-founder Adam Taggart and I have hewed to the “Ka-POOM!” theory, which states that a major deflation will scare the central banks so badly […]
A Word About the Current Chaos in Prices and Inflation
A Word About the Current Chaos in Prices and Inflation Some prices collapsed, others skyrocketed, and the Consumer Price Index went haywire. Here’s what I’m seeing beyond the near term — and it’s not “deflation.” Amid soaring prices of meat, beverages, fruit, veggies, and other food at home, and surging costs of personal goods, medical […]
Core CPI Crashes By Most On Record; Food Costs Soar As Energy & Apparel Collapse
Core CPI Crashes By Most On Record; Food Costs Soar As Energy & Apparel Collapse Headline Consumer Prices fell 0.8% MoM – the biggest drop since 2008 – as soaring food inflation was dominated by plunging energy, apparel, and lodging costs… But it was Core CPI, printing 0.4% MoM that made the headlines. That is the […]
The Problem is Not Deflation, It’s Attempts to Prevent It
The Problem is Not Deflation, It’s Attempts to Prevent It Let’s investigate the Fed’s effort to prevent price deflation. Here’s a Tweet that caught my eye. Real Vision✔@RealVision · May 1, 2020 “We’re about to have deflation and the market hasn’t figure it out yet… when it does, the Fed is going to shit itself.” @hendry_hugh @raoulGMIhttps://rvtv.io/3aWzxf4 […]
Eurozone Collapse: V-Shaped Recovery Mirage Is Gone
Eurozone Collapse: V-Shaped Recovery Mirage Is Gone Eurozone Economy Collapses 3.8% in the first quarter, the worst on record. Spain (-5.2%) and France (-5.6%) GDP were much worse than Italy (-4.7%). Economist Daniel Lacalle offers his thoughts on the European economy in a YouTube video. Daniel Lacalle✔@dlacalle_IA EUROZONE COLLAPSE The V-Shaped Recovery Mirage Is Gone. […]
Inflation or Deflation? Collapse in Demand Trumps Supply Shocks
Inflation or Deflation? Collapse in Demand Trumps Supply Shocks The inflationists are coming out of the woodwork, but they are wrong. Get Ready for the Return of Inflation, says Tim Congdon, in a Wall Street Journal op-ed. The economists Milton Friedman and Anna Jacobson Schwartz demonstrated in “A Monetary History of the United States” that a collapse […]
How Oil Prices Could Go To $100
How Oil Prices Could Go To $100 “We’re in a deflationary moment that surpasses anything seen in most people’s lifetimes,” proclaimed a New York Times byline on Tuesday, the morning after oil prices went negative. The West Texas Crude Intermediate benchmark plummeted to previously unimaginable depths, closing the day at negative $37.63 per barrel. The novel coronavirus has […]
The destructive force of bank credit
The destructive force of bank credit Commentators routinely confuse the deflationary effects of a contraction of bank credit with the inflationary effects of central bank policies designed to offset it. Central banks always ensure their stimulus is greater, so inflation, not deflation, is always the outcome. In order to understand bank credit, we must enter […]
Overcapacity / Oversupply Everywhere: Massive Deflation Ahead
Overcapacity / Oversupply Everywhere: Massive Deflation Ahead The price of a great many assets will crash, out of proportion to the decline in demand. Oil is the poster child of the forces driving massive deflation: overcapacity / oversupply and a collapse in demand. Overcapacity / oversupply and a collapse in demand are not limited to the […]
What Will It Take to Get the Public to Embrace Sound Money?
What Will It Take to Get the Public to Embrace Sound Money? In the last decade, the combination of virulent asset price inflation and low reported consumer price inflation crippled sound money as a political force in the US and globally. In the new decade, a different balance between monetary inflation’s “terrible twins” — asset […]
Inflation Is Coming…
Inflation Is Coming… Investing is all about probabilities. If the perceived odds of an event are high, certain securities will be priced based on those expected probabilities. The corollary is that when an event is perceived as almost impossible, securities do not price in any chance of it occurring. If that event does occur, all […]
An Inflationary Depression
An Inflationary Depression Financial markets are ignoring bearish developments in international trade, which coincide with the end of a long expansionary phase for credit. Both empirical evidence from the one occasion these conditions existed in the past and reasoned theory suggest the consequences of this collective folly will be enormous, undermining both financial asset values […]
