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Deflation

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telegraph.co.uk - 12/7/2008

Deflation virus is moving the policy test beyond the 1930s extremes

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The world's policymakers need to keep ripping up the rule book to prevent depression writes Ambrose EvansPritchard.

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londonbanker.blogspot.com - 12/13/2008

Deflation has become inevitable

— londonbanker.blogspot.com — For a while now I have been on the fence on the inflation/deflation issue – whether the... massive monetisation of bad debts by central banks and governments will lead to rapidly escalating inflation as currencies are debased or, alternatively, lead to ... (more) Deflation has become inevitable

Currencies

Deflation

Comments vote downundo vote up naked capitalism found this 12/13/2008found this

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bespokeinvest.typepad.com - 12/12/2008

Deflation Coming in China?

— bespokeinvest.typepad.com — It wasn't too long ago that one of the biggest worries facing the global economy was that... improved standards of living in China would lead to higher wages for its workers. This, it was feared, would cause the country to begin exporting inflation ... (more) Deflation Coming in China?

Currencies

Deflation

Comments vote downundo vote up GalaTime found this 12/12/2008found this

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declineandfallofwesterncivilization.blogspot.com - 12/4/2008

deflation in china

— declineandfallofwesterncivilization.blogspot.com — the call from morgan stanley . Despite still relatively high CPI and PPI inflation at the current... juncture, we believe that a perfect storm for deflation is gathering strength under the surface and is expected to bring about a deflationary impulse in 1H09, which may morph into persistent ... (more) deflation in china

Currencies

Deflation

Comments vote downundo vote up Rover found this 12/4/2008found this

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Links Pearl Harbor Day '08
naked capitalism — Harbour seals' decline 'alarming' BBC Deflation virus is moving the policy test beyond the 1930s extremes Ambrose Evans-Pritchard, Telegraph US Regime Uncertainly, 1937 and 2008 Mies Economics Blog. Overeggs the pudding, but an interesting notion nevertheless. Detroit Bailout Talks Slow Over 'Czar' Role Wall Street Journal. Funny, no one worried about such niceties for banks. Argument #1 for SOC: Bailing out Cerberus and the US Auto Industry Roger Ehrenberg Countrywide Class Action: What’s a Good Sale? Chris ...

Sunday morning links
The Mess That Greenspan Made — TOP STORIES Talks Turn to Terms for Auto Aid - Washington Post Obama: Economy to get worse before it improves - AP "Car czar" proposed for any automaker bailout - Reutersg Deflation virus is moving the policy test beyond the 1930s extremes - Telegraph 'Depression Economics' - Newsweek First Georgia Community Bank Closed, Boosting 2008 Toll to 23 - Bloomberg Krugman: US auto industry will probably disappear - AP MARKETS/INVESTING Stocks: More pain, more gains? - ...

Words from the (investment) wise 12.15.08
The Big Picture — ... assets that it buys’. US Treasury bonds top the list, but it can equally purchase mortgage securities from US agencies such as Fannie, Freddie and Ginnie, or company bonds, or commercial paper. Any asset will do. “The Fed can acquire houses, stocks, or a herd of Texas Longhorn cattle if it wants. It can even scatter $100 bills from helicopters. (Actually, Japan is about to do this with shopping coupons).” Source: Ambrose Evans-Pritchard, Telegraph, December 9, 2008. Asha Bangalore (Northern Trust): Household ...

Best Quotes of December 2008
GoldSeek.com — ... to lose real purchasing power. Some will migrate into gold. Negative real rates were the monetary foundation of the biggest secular gold bulls in modern history, the 1970s and the 2000s. And just as it took radically high 6%+ real rates to end that 1970s gold bull, this bull isn’t likely to end until we see sustained hugely positive real rates as well. In the meantime, gold will continue to thrive on balance despite big pullbacks from time to time driven by capricious sentiment. Ambrose Evans-Pritchard, Telegraph Debt deflation is tightening its grip over the entire global ...

Economists cursing out economists
InvivoAnalytics.com — ... Mr Bernanke has not run out of ammunition yet. He has a nuclear arsenal, and has begun to use it. The Fed is already buying mortgage debt. It has infinite means of injecting stimulus into the economy by ‘quantitiative easing’, if needs be. It can ultimately print money and hang it on Christmas trees. Deflation virus is moving the policy test beyond the 1930s extremes “The US government has a technology, called a printing press, that allows it to produce as many US dollars as it wishes at essentially no cost,” he said. . . . His point was that central banks never run out of ...