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The Masked Tulip

Telegraph Appears To Have Found A Bunch Of Deflation Articles

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Telegraph is going all out today to warn about the danger of deflation in Europe and how something must be done to cause inflation globally.

They don't want QE to stop do they? More, more, more! Addicted markets.

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Telegraph is going all out today to warn about the danger of deflation in Europe and how something must be done to cause inflation globally.

They don't want QE to stop do they? More, more, more! Addicted markets.

The break up of Europe would get the inflation fire going?

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QE is inflating the price of financial assets only. In every other sense it is deflationary. The fraction of QE cash that's escaped into the wild has been hoarded by bankers and rent seekers and there's been no trickle down. The acceleration of global growth that Bernanke, Krugman etc. promised via the mythical Money Multiplier has simply failed to materialise, as Steve Keen predicted. The world economy is still facing a demand/deflationary collapse.

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QE is inflating the price of financial assets only. In every other sense it is deflationary. The fraction of QE cash that's escaped into the wild has been hoarded by bankers and rent seekers and there's been no trickle down. The acceleration of global growth that Bernanke, Krugman etc. promised via the mythical Money Multiplier has simply failed to materialise, as Steve Keen predicted. The world economy is still facing a demand/deflationary collapse.

Yes, reading the Telegraph today I did get the sense that they have a lot of people worried that their house might fall in price.

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Telegraph is going all out today to warn about the danger of deflation in Europe and how something must be done to cause inflation globally.

They don't want QE to stop do they? More, more, more! Addicted markets.

It's been a while since the last expansion of QE in the UK so we're starting to feel the underlying deflation again, especially since the pound is managing to appreciate against the dollar where they are continuing to print massive amounts of new money every single month.

Not to worry, another round of pound printing should see prices for everything back on a firmly upward trajectory - not to mention bigger bonuses for those in the financial sector with first access to the new cash who can punt it into commodities to profit from their privileged position.

We just have to be careful that people's wages don't rise at anything like the underlying rate of inflation or the wealth transfer mechanism to the elite won't work properly.

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QE is inflating the price of financial assets only. In every other sense it is deflationary. The fraction of QE cash that's escaped into the wild has been hoarded by bankers and rent seekers and there's been no trickle down. The acceleration of global growth that Bernanke, Krugman etc. promised via the mythical Money Multiplier has simply failed to materialise, as Steve Keen predicted. The world economy is still facing a demand/deflationary collapse.

With you on this.

Yes, reading the Telegraph today I did get the sense that they have a lot of people worried that their house might fall in price.

Lower prices to support the lower wages. ;)

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With you on this.

Lower prices to support the lower wages. ;)

Either house prices come down or current prices go up to bring the two back into balance. But keeping house prices high costs money that the UK govt can no longer afford to to borrow. Ergo, house prices must fall. Only a hyperinflation could stop it.

Your call, George.

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Either house prices come down or current prices go up to bring the two back into balance. But keeping house prices high costs money that the UK govt can no longer afford to to borrow. Ergo, house prices must fall. Only a hyperinflation could stop it.

Your call, George.

:P

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