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Featured Articles: GEMS of the Week
Category: Deflation
The news items published under this category are as follows.
Tuesday, November 18, 2008
UK Tax Cuts and Free Money in Japan / Politics / Deflation
By: Mike_Shedlock
The Times Online is reporting Ministers admit that tax rises will follow Gordon Brown's tax cuts . Tax rises are set to follow next week's tax cuts, ministers admitted yesterday as Gordon Brown raised the spectre of deflation in Britain for the first time.
David Cameron predicted a tax-raising “bombshell” after Lord Mandelson, the Business Secretary, spoke of the need for “structural adjustments later on” and Mr Brown himself accepted that the Pre-Budget Report (PBR) stimulus would be “temporary”. Read full article... Read full article...
Thursday, November 13, 2008
Combating Credit Based Derivatives Deflation / Interest-Rates / Deflation
By: Mick_Phoenix
Welcome to An Occasional Letter. This week we pick up from the end of this article as we begin the process of peering into the future to assemble the next stage of the scenario I have followed over the past 6+ years.
However before we start I have recently had numerous e-mails asking to join my mailing list. I thank those people for their interest but I no longer run a mailing list since converting to a subscription only website. If you would like to know more, visit An Occasional Letter for details.
Tuesday, November 11, 2008
Corporate Industrial Bond Yields Strongly Support Economic Deflation Thesis / Interest-Rates / Deflation
By: Mike_Shedlock
As one might expect in a credit crunch, default risk is rising. One measure of that risk is corporate bond yields. Let's take a look and see how various grades of bonds are performing. Read full article... Read full article...
Thursday, November 06, 2008
Global Interest Rate Cuts ECB .50% BOE 1.5% Equals Deflation / Interest-Rates / Deflation
By: Mike_Shedlock
The Bank of England cut rates by 1.5% in a larger than expected move, The Swiss National Bank by 50 basis points in an emergency action when it was not even meeting, and the European Central Bank cut rates as expected by 50 basis points earlier today. Read full article... Read full article...
Thursday, November 06, 2008
The Economic Deflation Debate: Why this time is different / Economics / Deflation
By: John_Lee
It's fascinating to study and observe the distribution of wealth. History has shown great nations and companies that rose to the top from nothing and subsequently fell to nothing.Read full article... Read full article...
Wednesday, October 29, 2008
Economic Deflation in Gold Terms and the U.S. Dollar Collapse / Economics / Deflation
By: Eric_deCarbonnel
We have finally gotten to the point where most investors and the media understand the severity of the credit crisis and are expecting deflation. It is a good start, but unfortunately, it still isn't quite right. Deflation will be in terms of gold, like in 1929
Read full article... Read full article...
Sunday, October 26, 2008
Contraction of the Whole Financial and Economic System / Economics / Deflation
By: Mike_Whitney
"The great inter-war slumps were not acts of God or of blind forces. They were the sure and certain result of the concentration of too much economic power in the hands of too few men (who) felt no responsibility to the nation." From the 1945 UK Labour manifesto Let Us Face The Future
There are signs that the credit crunch is easing. Interbank lending in dollars has fallen for a ninth straight day. The various indicators of stress in the market--Libor, the TED spread, and the Libor-OIS spread--are all gradually returning to normal, but the damage to the broader economy has been substantial.
Read full article... Read full article...
Tuesday, October 21, 2008
The Paradox of Deleveraging Vs Something for Nothing Economics / Economics / Deflation
By: Mike_Shedlock
Earlier today, in Keynesian Claptrap From PIMCO I spoke of the ridiculousness of the paradox of thrift . Here two more articles worth your time reading that rebut the seemingly never ending Keynesian Claptrap coming from the likes of Bernanke, Paulson, PIMCO, Roubini, and Krugman. I make the above statement with one reservation. Nouriel Roubini has called this economic disaster as well as anyone. I commend him for many brilliant calls. However I simply cannot sit back and say nothing about the barrage of bad economic thinking in regards to the solution to this crisis coming from everyone in the group above.
Read full article... Read full article...
Thursday, October 09, 2008
Primary Preconditions for Deflation and Economic Depression / Economics / Deflation
By: EWI
The following was adapted from Bob Prechter's New York Times and Amazon best seller, Conquer the Crash – You Can Survive and Prosper in a Deflationary Depression .
Deflation requires a precondition: a major societal buildup in the extension of credit (and its flip side, the assumption of debt).
Read full article... Read full article...
Thursday, October 02, 2008
Real Estate / Credit Bubble Deflation Foresight / Housing-Market / Deflation
By: Steve_Moyer
"And what a bunch of numbskulls - Greenspan, Paulson and Bernanke! Every word they've said so far has been financial poison. "Greenspan relaxed about house prices..." reported the Financial Times in 2005. "Most negatives in housing are probably behind us..." said the same sage in October 2006. "We believe the effect of the troubles in the subprime sector...will be likely limited..." said Bernanke in March 2007. It's "not a serious problem...I think it's going to be largely contained," added Paulson in April 2007. Read full article... Read full article...
Friday, September 05, 2008
US Treasury Bull Market Continues as Risks of Deflationary Crash Grow / Interest-Rates / Deflation
By: Mike_Shedlock
The US Treasury Bull market is still intact after 27 years. 30 Year Long Bond 1990-Present
Read full article... Read full article...
Monday, August 11, 2008
Economic Deflation is Not Coming, Deflation is Here! / Economics / Deflation
By: Mike_Shedlock
David, Rosenberg, Merrill Lynch's chief North American economist, says the US Remains Firmly In Recession . Merrill Lynch's David Rosenberg, the first economist from a major bank to declare a US recession was underway back in early January, argues that recent unemployment figures show yet more evidence that the US economy is a deep recession. My Comment : I could not possibly agree more.
Read full article... Read full article...
Monday, July 14, 2008
Price Inflation and Asset Deflation, the Reversal of 25 Years of Booming Markets / Stock-Markets / Deflation
By: Adrian_Ash
AFTER TWENTY-FIVE YEARS of booming asset markets, it's getting hard to keep hold of your money, let alone grow it.
Inflation is destroying fixed-income bonds. Stocks have tipped into a bear market, down more than one-fifth worldwide. Real estate suffers both over-supply and an historic shortage (too many units vs. no mortgage finance). And this is clearly no time to launch a business relying on discretionary spending, consumer debt or prompt payment.
Read full article... Read full article...
Wednesday, July 09, 2008
Soaring Unemployment, Collapsing Credit From Stagflation to Deflation / Economics / Deflation
By: Mike_Shedlock
I recently received an Email from "RS", a long time member of the hyperinflation is coming crowd now but now sees things in a different light. Let's tune in and see what "RS" has to say.
Mish, I was a true believer in the "hyperinflation is coming" theory for quite some time. However, I have since changed my mind. Here's why: I own a computer business and I used to pay techs $15-20/hr. I now have people willing to work for $8-$10/hr. While the nice guy inside is saying “pay people well” the businessman is saying “market conditions demand paying people what the market will support.”
Tuesday, July 08, 2008
Bursting Bubbles Mean Inflation to Give Way to Deflation / Economics / Deflation
By: John_Mauldin
There is a reason I call this column Outside the Box. I try to get material that forces us to think outside our normal comfort zones and challenges our common assumptions. And this week's letter does just that. I have made the comment more than once that is it unusual for two major bubbles to burst and for the conversation and our experience to be rising inflation and not a serious problem with deflation.
Van Hoisington and Dr. Lacy Hunt give us a seminar on why it will be deflation that will ultimately be the problem and not the current inflation we are dealing with today. This week's letter requires you to think, but it will be worth the effort. Remember our lesson from Economics 101. If you raise the supply of something, in normal markets the price goes down. And if you increase the price, suppliers will respond by producing more.
Read full article... Read full article...
