The Global Economy

October6

Deflation Warning: The Next Wave


From the article:

We’ve been tracking the deflationary impulse for a while, and declared deflation the winner back in July of this year.

A Failed Strategy

What exactly do we mean by deflation?  Back in 2008 the central banks of the developed world, as well as China, had a choice:

  1. admit that prior policies geared towards encouraging borrowing at a faster rate than income growth were a horrible idea, or

  2. double down and push those failed policies even harder

As we all know, they chose option #2. And so here we are, just 8 years later, with nearly $60 trillion in new debt piled on top of the prior mountain

http://www.zerohedge.com/news/2015-10-01/deflation-warning-next-wave

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Posted October 6, 2015 by Sue Says in category Economic News

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