Post Tagged with: "deflation"
Ray Dalio: Inflation is not just around the corner… yet
With governments printing money, inflation, now propping up asset prices, will eventually come to consumer prices. First the deflation, then the inflation, I say. Ray Dalio agrees. But, he also has some choice things to say about the situation in Europe
Deflationary Forces in the US and Loan Officer Survey
After the PCE deflator was reported yesterday the Dallas Fed re-jigs it, cutting out strongest and weakest to arrive at a trimmed mean. By its calculations the PCE deflator rose 0.1% at an annualized basis, which is the result of rounding up. On a year-over-year basis the Dallas trimmed mean measure is up 1% vs
David Rosenberg: Ten Reasons for a Dose of Caution
Markets were unimpressed with the size of the just-announced $145 billion rescue package or the ability of Greece to meet the terms. A bailout of all Club Med countries would, according to estimates I’ve seen, approach $800 billion. This is bigger than LEH. China raised reserve ratio requirements 50bps for the third time this year
Why The World Is Headed For A Balance Sheet Recession
In my post Koo, White, Soros and Akerloff videos from inaugural INET conference I highlighted four speeches from the recent George Soros-sponsored pow-wow. I have already written up a post based on the one by William White in "The origins of the next crisis." This post serves to give you some colour on another of
Links: 2010-03-03 – Deflation, Greece PM warns, Jobless benefits lost and more
Detroit homes sell for $1 amid mortgage and car industry crisis | Business | The Guardian Aides say Coakley will seek reelection as attorney general – The Boston Globe Depression’s Upside – NYTimes.com Bankruptcy looms, Greek PM warns – The Globe and Mail 400,000 Will Lose Jobless Benefits Next Week – Economix Blog – NYTimes.com
Yamada: Ready for a bond bear market?
Uber-technician Louise Yamada is now warning that the secular bear market in equities is likely to be joined by one in bonds as well. In the video below, she talks with Bloomberg’s Pimm Fox about her view that bond yields are going to rise over time. I find her analysis that secular cycles in the
A strong dollar, euro downside and a gold liquidation panic
Back in July, Ed pointed to some comments by George Soros on currencies that I felt were perceptive. Soros said: The dollar is a very weak currency except all the others. With most major currencies down significantly against the dollar, we now see the truth in that statement. I want to add some color and
On the sovereign debt crisis and the debt servicing cost mentality
As we discuss sovereign debt levels, currencies and competitiveness, it bears remembering that interest rates are at the heart of many of these debates. To the degree debt service costs are the only measure used to determine how high a debt burden is, you are going to run into problems with low interest rates. The lower the rate of interest, the higher the debt load a given repayment schedule can service. Focussing only on debt service costs is clearly bubble mentality that led to huge credit growth in the household sector in the past decade. If this same mentality creeps into the debate on public sector debt burdens, expect the same results
Stop the madness now!
This is a post I just wrote over at Yves Smith’s site Naked Capitalism in response to a reader request. Marshall Auerback has already written a reply as well and I will post this later today. A reader at Naked Capitalism asked us to respond to a recent article from the Christian Science Monitor asking
Hayek: “I am not only against inflation but I am also against deflation.”
Steve Horwitz had an interesting read last week on Friedrich von Hayek, the Nobel Prize winning Austrian School economist. Von Hayek is best known for his 1944 Libertarian call to arms “Road to Serfdom” and is generally considered one of the fathers of the free market ideology. In Horwitz’s piece, he points out that Hayek
Debtflation
Morgan Stanley has an interesting piece out this morning called Debtflation. In the past, they have raised alarm bells over what they see as embedded inflation in the loose monetary policy presently being followed by most central banks. This particular piece focuses not on a general potential for inflation, but the possibility that central banks
The next crisis is already under way
Wolfgang Munchau of the Financial Times wrote a very important comment piece in today’s Financial Times. In it he said that central banks are targeting asset prices to avoid the brunt of cyclical downturns. This policy is inducing asset bubbles and creating a more volatile real economy with unpredictable negative consequences. I want to expand