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Deflationary Fears Are Spreading Globally

August 27, 2014

The overall consensus of this article is that interest rates will remain low and the central banks will continue to muddle with monetary policy.

BCA Daily Insights (August 25, 2014) notes that, “out of 32 OEC countries, more than two-thirds have domestic inflation rates that fall short of 1%.” BCA analysts go on to argue that the worldwide inflation rate may converge to zero over the next couple of years.”

Click here to read the article.

Discussion
14 Comments
    Aug 27, 2014 27:05 PM

    Exactly Cory. Deflation threats have not yet died and gone away by a long shot. The world continues to be burdened by excessive debt and overpriced assets at a time when yield is dismal and falling. Even if the US achieves desired 2% inflation we cannot forget that it is but one country of many and that most others are fighting a different battle.

      Aug 28, 2014 28:16 AM

      Well, ‘Bird, here we are right around the US$ 82.6 that I first called here
      http://www.kereport.com/2014/07/31/market-commentary-doc-gary/
      back on July 31st. Did you notice how it gapped Sunday night and ever since has been getting hung out to dry as if it were on a clothesline? Kinda LOOKS like a clothesline. This 82.6 is a powerful resistance so if you want more US$ gains, it needs to get back in gear, and FAST! And with an unmistakable IMPULSE move higher.

    Aug 28, 2014 28:55 AM

    Bird, I think the boys are starting to get it! Could this have a hidden meaning? (Herd)

    Aug 28, 2014 28:25 AM

    Meanwhile,real inflation is 10% annually.
    Not sure which deflationary world some dream exists:
    http://www.shadowstats.com/alternate_data/inflation-charts

      Aug 28, 2014 28:19 AM

      It’s NOT a “one or the other” paradigm, Matt. An economy can have inflation in some areas, deflation in others, and have them both at the same time. That’s what we’re witnessing now.

        Aug 28, 2014 28:45 AM

        Sorta kinda… but not really. The money supply is either growing or it isn’t (Austrian school).
        The general price level is either rising or it isn’t (Keynesian school).

          Aug 28, 2014 28:43 AM

          Since the definition has been changed from money suuply to price level, it diverts our attention. It is also becoming easy to manipulate public opinion since they can always find something with price going down. Then we are confused and end up with no action.

          Aug 28, 2014 28:16 PM
    Aug 28, 2014 28:16 AM

    What’s wrong with these brain-dead deflationists? Deflation is no more than propaganda which elites use as excuse to enrich themselves by printing money. When they print, they and their buddies will get the money. These stupid deflationists just eat this sh*t on its face value. Just look around, I don’t see anything dropping in price. Everything is getting more and more expensive. It is common sense that when you mass produce something, the value comes down. This “something” is paper money now. In my opinion, these deflationary theorists are not only useless and they are ruinous. In the coming years, there is no chance of deflation. We have two possibilities, inflation or collapse. Since there is so much debt in the system, any deflation will trigger collapse. Central banks will make sure deflation does not happen. Some genius once said “INFLATION OR DIE”. It is absolutely right.

    I really have no patience with these deflationary theorists.

      Aug 28, 2014 28:57 AM

      You’re right. I don’t know why it’s so hard to understand that the central planners can (and will) always choose inflation over deflation.

      Aug 28, 2014 28:03 AM

      A simple rule to understand why there is inflation; He who receives the money first (The elite banks) makes the most off of that money.

        Aug 28, 2014 28:07 AM

        Absolutely. If I were them, I will do it too. Nobody is saint.

    Let me know when we have FOOD DEFLATION……….