{"id":16886,"date":"2016-01-24T20:07:42","date_gmt":"2016-01-25T01:07:42","guid":{"rendered":"http:\/\/olduvai.ca\/?p=16886"},"modified":"2016-01-24T20:08:13","modified_gmt":"2016-01-25T01:08:13","slug":"why-the-black-hole-of-deflation-is-swallowing-the-entire-world-even-after-central-banks-have-pumped-trillions-into-the-economy","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=16886","title":{"rendered":"Why the Black Hole of Deflation Is Swallowing the Entire World \u2026 Even After Central Banks Have Pumped Trillions Into the Economy"},"content":{"rendered":"

Why the Black Hole of Deflation Is Swallowing the Entire World \u2026 Even After Central Banks Have Pumped Trillions Into the Economy<\/a><\/h3>\n
Deflation Threatens to Swallow the World<\/div>\n
\n
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Many high-powered people and institutions say that deflation is threatening much of the world\u2019s economy \u2026<\/p>\n

China may\u00a0export deflation<\/a>\u00a0to the rest of the world.<\/p>\n

Japan is\u00a0mired in deflation<\/a>.<\/p>\n

Economists are afraid that deflation will\u00a0hit Hong Kong<\/a>.<\/p>\n

The Telegraph\u00a0reported<\/a>\u00a0last week:<\/p>\n

\n
RBS has advised clients to brace for<\/strong>\u00a0a \u201ccataclysmic year\u201d and a\u00a0global deflationary crisis<\/strong>, warning that major stock markets could fall by a fifth and oil may plummet to $16 a barrel.<\/div>\n

***<\/p>\n

Andrew Roberts, the bank\u2019s research chief for European economics and rates, said that global trade and loans are contracting, a nasty cocktail for corporate balance sheets and equity earnings.<\/p><\/blockquote>\n

The Independent\u00a0notes<\/a>:<\/p>\n

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Lower oil prices could push leading economies into deflation. Just look at the latest inflation rates \u2013 calculated before oil fell below $30 a barrel. In the UK and France, inflation is running at an almost invisible 0.2 per cent per annum; Germany is at 0.3 per cent and the US at 0.5 per cent.<\/div>\n

Almost certainly these annual rates will soon fall below zero and so,\u00a0at the very least, we shall be experiencing \u2018technical\u2019 deflation<\/strong>. Technical deflation is a short period of gently falling prices that does no harm. The real thing works like a doomsday machine and engenders a downward spiral that is difficult to stop and brings about a 1930s style slump.<\/p>\n

Referring to the risk of deflation, two American central bankers indicated their worries last week. James Bullard, the head of the St Louis Federal Reserve, said falling inflation expectations were \u201cworrisome\u201d, while Charles Evans of the Chicago Fed, said the situation was \u201ctroubling\u201d.<\/p><\/blockquote>\n

Deflation will\u00a0likely nail Europe<\/a>:<\/p>\n

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

Why the Black Hole of Deflation Is Swallowing the Entire World \u2026 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\u2019s economy \u2026 China may\u00a0export deflation\u00a0to the rest of the world. Japan is\u00a0mired in […]<\/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":[10469,56,124,130,202,11938,285,305,10954,333,11937,359,383,403,452,7655,6040,517,7477,6041,662,6911,1264,4318],"class_list":["post-16886","post","type-post","status-publish","format-standard","hentry","category-economics","tag-baltic-dry","tag-bank-of-england","tag-central-banks","tag-china","tag-deflation","tag-dell","tag-eurozone","tag-federal-reserve","tag-ferrari","tag-france","tag-george-washington","tag-germany","tag-great-depression","tag-hong-kong","tag-japan","tag-john-paulson","tag-main-street","tag-mexico","tag-morgan-stanley","tag-private-equity","tag-quantitative-easing","tag-rbs","tag-recession","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16886","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=16886"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16886\/revisions"}],"predecessor-version":[{"id":16887,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16886\/revisions\/16887"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16886"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16886"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16886"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}