{"id":10376,"date":"2015-07-25T06:51:45","date_gmt":"2015-07-25T11:51:45","guid":{"rendered":"http:\/\/olduvai.ca\/?p=10376"},"modified":"2015-07-25T06:51:45","modified_gmt":"2015-07-25T11:51:45","slug":"deflation-is-winning-beware","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=10376","title":{"rendered":"Deflation Is Winning \u2013 Beware!"},"content":{"rendered":"

Deflation Is Winning \u2013 Beware!<\/a><\/h3>\n
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Expect the ride to get even rougher<\/strong><\/p>\n<\/div>\n<\/div>\n<\/div>\n

Deflation is back on the front burner and it’s going to destroy all of the careful central planning and related market manipulation of the past 6 years.<\/p>\n

Clear signs from the periphery indicate that a destructive deflationary pulse has been unleashed. Tanking commodity prices are confirming that idea.<\/p>\n

Whole groups of enterprises involved in mining and energy are about to be destroyed. And the commodity-heavy nations of Canada, Australia and Brazil are in for a very rough ride.<\/p>\n

Whether the central banks can keep all of their carefully-propped equity and bond markets elevated throughout the next part of the cycle remains to be seen.\u00a0 We know they will try very hard. They certainly are increasingly willing to use any all tools at their disposal to keep the status quo going for as long as possible.<\/p>\n

Whether it\u2019s the People\u2019s Bank of China stepping in to the market to buy 10% stakes in major Chinese corporations in a matter of weeks, the Bank Of Japan becoming the majority owner of key ETFs in the Japanese markets, or the Swiss National Bank purchasing $100 billion of various global equities, we see the same desperation. Equity prices are being propped, jammed and extended higher and higher without regard to risk or repurcussions.<\/p>\n

It makes us wonder:\u00a0Why haven\u2019t humans ever thought to print their way to prosperity before?<\/em><\/p>\n

Well, that\u2019s the problem. They have.<\/p>\n

And it has always ended up disastrously. \u00a0History shows that the closest thing that economics has to an inviolable law is:\u00a0There\u2019s no such thing as a free lunch<\/em>.<\/p>\n

Sadly, all of our decision-makers are trying their hardest to ignore that truth.<\/p>\n

First, The Fall\u2026.<\/h2>\n

So how will all of this progress from here?<\/p>\n

We\u2019ve always liked the Ka-Poom! theory by Erik Janzen which\u00a0we explained previously<\/a>\u00a0like this:<\/p>\n

 <\/p>\n

…click on the above link to read the rest of the article…<\/p>\n","protected":false},"excerpt":{"rendered":"

Deflation Is Winning \u2013 Beware! Expect the ride to get even rougher Deflation is back on the front burner and it’s going to destroy all of the careful central planning and related market manipulation of the past 6 years. Clear signs from the periphery indicate that a destructive deflationary pulse has been unleashed. Tanking commodity […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[7525,57,90,124,125,130,6941,3596,1851,2656,202,212,280,305,374,1167,413,7526,536,588,2914,2218,3824,1555,851,1478,1031],"class_list":["post-10376","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bank-of-china","tag-bank-of-japan","tag-brazil","tag-central-banks","tag-central-planning","tag-china","tag-chinese-stock-market","tag-chris-martenson","tag-commodity-price-collapse","tag-copper","tag-deflation","tag-dollar","tag-euro","tag-federal-reserve","tag-gold","tag-greece","tag-hyperinflation","tag-ka-poom","tag-money","tag-oil","tag-pboc","tag-peak-prosperity","tag-puerto-rico","tag-swiss-national-bank","tag-venezuela","tag-yen","tag-yuan"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10376","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10376"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10376\/revisions"}],"predecessor-version":[{"id":10377,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10376\/revisions\/10377"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10376"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10376"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10376"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}