Monday, Dec 08, 2008
Deflation risk
TimesOnline: Falling factory costs raise deflation threat
Paul Dales, UK economist at Capital Economics, said: “The further fall in UK producer prices in November provides more evidence that deflation is now becoming the greatest policy concern.
Posted by v stor @ 08:18 PM (299 views) Add Comment
2 Comments
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1. inbreda said...
firesales are not genuine indicators of deflation.
People cant buy, shops are forced to sell. They will slash prices until they unprofitable at which point they inevitably go bust. Once all the waste is out of the system prices will sky rocket.
2. Planning4acrash said...
Commodity prices have fallen as a result of fire sales to cover margin calls. It is like the tsunami wave that clears the beach revealing beautiful shells. People flood there and take out credit to get hold of them just before they are swept away by a torrent of hyperinflation.