Sunday, Sep 06, 2009
AEP: Deflation is spreading
The Daily Telegraph: Does the world have the courage to deal with its debts?
Deflation is spreading from the core of the global system to the most unexpected regions of the world. It has even reached Latin America. Prices are sliding in Peru, Chile, Colombia, Paraguay, Bolivia, Ecuador, Guatemala, and El Salvador, to the consternation of everybody.
We face the devastating consequences of our own credit delusions. Are we up it?
Posted by apophis @ 08:19 PM (322 views) Add Comment
2 Comments
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1. techieman said...
"If PIMCO guru Bill Gross and hedge fund manager Paul Tudor Jones are right in fearing that the US economy will tip back into a "W-shaped" recession as the sugar rush of fiscal stimulus fades, we may wake up to find that we have baked deep deflation into the pie for 2010 and 2011. The G20's talk of "exit strategies" and rate rises will seem surreal."
Paul Tudor Jones is an absolute god in the world of trading... has been for years. Personally i am much more likely to believe him than most of the economists and politicians out there.
I make no apology for saying he is someone i admire. If you read the wiki entry you will see what i mean:
http://en.wikipedia.org/wiki/Paul_Tudor_Jones
Does he still do it for the money? Well i will leave you to work that one out.
2. stillthinking said...
Out of the three alternatives offered, ambrose suggests that paying the debt down is viable, but it isn't. surely that is the whole point of debt deflation. further, creditors apparently don't consume enough for the debts to be paid off through production.
which leaves default or inflation (stagflation in our case).