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Tag Archives: deflation
Mario Draghi Got Lost In A Rabbit Hole
Mario Draghi Got Lost In A Rabbit Hole Arthur Rackham “Why, Mary Ann, what are you doing out here?”1907 I’ll try and keep this gracefully short: Mario Draghi ‘unleashed’ a bazooka full of desperate tools on the financial markets yesterday and they blew up in his face faster than you could say blowback or backdraft […]
Never Go Full-Kuroda: NIRP Plus QE Will Be Contractionary Disaster In Japan, CS Warns
Never Go Full-Kuroda: NIRP Plus QE Will Be Contractionary Disaster In Japan, CS Warns In late January, when Haruhiko Kuroda took Japan into NIRP, he made it official. He was full-everything. Full-Krugman. Full-Keynes. Full-post-crisis-central-banker-retard. In fact, with the BoJ monetizing the entirety of JGB gross issuance as well as buying up more than half of all […]
How Italy will fail and drag down the European Project
How Italy will fail and drag down the European Project Italy is big enough to matter (it is the eight largest economy on the planet), but so uneventful that most does not pay any attention to what is going on there. We contend that Italy will, during the next year or two, be on everyone’s […]
Are Asian Central Bankers Even Crazier Than Our Own?
Are Asian Central Bankers Even Crazier Than Our Own? That the world’s central bankers get a lot of things wrong, deliberately or not, and have done so for years now, is nothing new. But that they do things that result in the exact opposite of what they ostensibly aim for, and predictably so, perhaps is. […]
Forget Deflation. Stagflation Arrives in Canada
Forget Deflation. Stagflation Arrives in Canada Worst Plunge in Retail Sales since 2008. Inflation Whacks Consumers Retail sales in Canada fell 2.2% in December from November on a seasonally adjusted basis, but not adjusted for inflation, to C$43.2 billion. “Declines were widespread as lower sales were reported in 10 of 11 subsectors, representing 97% of […]
The Inevitability of Dramatic Inflation
The Inevitability of Dramatic Inflation No one is very concerned about inflation right now and that’s understandable. Although inflation exists in some sectors of the economy, the present subject of discussion is deflation. Any depression is inherently deflationary since spending is curtailed, which drives prices down. Since 2008, despite all the fudged reports emanating from governments, […]
Where Deflation Comes From
Where Deflation Comes From Financial bubbles blown on the back of massive amounts of debt, of necessity lead to debt deflation (it’s just entropy, really). Fighting this is futile, and grossly costly to boot. The only sensible thing to do is to guide the process as best you can and try to minimize the damage, […]
Why the Black Hole of Deflation Is Swallowing the Entire World … Even After Central Banks Have Pumped Trillions Into the Economy
Why the Black Hole of Deflation Is Swallowing the Entire World … Even After Central Banks Have Pumped Trillions Into the Economy Deflation Threatens to Swallow the World Many high-powered people and institutions say that deflation is threatening much of the world’s economy … China may export deflation to the rest of the world. Japan is mired in […]
Square Holes and Currency Pegs
Square Holes and Currency Pegs When David Bowie died, everybody, in what they wrote and said, seemed to feel they owned him, and owned his death, even if they hadn’t thought about him, or listened to him, for years. In the same vein, though the Automatic Earth has been talking about deflation (for 8 years, […]
Davos, Dalio, and a Depression?!
Davos, Dalio, and a Depression?! So, how does a deflationary depression resolve itself? When Ray Dalio, founder of the world’s largest hedge fund, Bridgewater Associates, referred to a possible economic depression as he was being interviewed at the World Economic Forum at Davos, it does not mean what most people think it means. Most of […]
Soon Comes The Deluge
Soon Comes The Deluge The robo-machines are now having a grand old time hazing the August lows at 1870 on the S&P, and may succeed in ginning up another dead-cat bounce or two. But this market is going down for the count owing to a perfect storm. To wit, the global and US economies are heading […]
Negative Oil Prices Arrive: Koch Brothers’ Refinery “Pays” -$0.50 For North Dakota Crude
Negative Oil Prices Arrive: Koch Brothers’ Refinery “Pays” -$0.50 For North Dakota Crude Do you have some extra space in your garage or attic? Or perhaps you own an oil tanker you aren’t currently using. Or maybe you have a storage unit that’s got a little extra room next to an old mattress and box […]
The Deflation Monster Has Arrived
Lukiyanova Natalia / frenta/Shutterstock The Deflation Monster Has Arrived And it sure looks angry As we’ve been warning for quite a while (too long for my taste): the world’s grand experiment with debt has come to an end. And it’s now unraveling. Just in the two weeks since the start of 2016, the US equity markets are […]
Markets Are Correcting Hard
Markets Are Correcting Hard An assessment of the risks of things getting worse from here The long-awaited global financial market correction has arrived. We are seeing collapses in all major markets and across all major categories. As usual, the pain has started at the edges, in the weaker elements (emerging markets, junk bonds, weak companies, etc.) […]
