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Executive Sadman

Denninger: Recession, Deep Recession

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Ruh-roh:

http://market-ticker.org/post=229009

Should co-incide nicely with Putin turning off the gas come October.

Who knows, might even see a spike in rates like 2008 after all.

Spikes in energy and food costs are disinflationary in the short term, it's the govt reponse to same that tends to generate inflation. The most likely outcome would not be a rate rise but more QE to counter the shock.

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"There is no ability in the economy to absorb such price increases as productivity and unit labor cost figures have shown."

Does that go for UK house prices too?

No, UK house prices are immune from any form of economic reality

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#TurningJapanese

What happened to J house prices 1990 to 2012...? With QE1-9 (currently 10 but came in as deflation ended).

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Spikes in energy and food costs are disinflationary in the short term, it's the govt reponse to same that tends to generate inflation. The most likely outcome would not be a rate rise but more QE to counter the shock.

i disagree.

they are very inflationary short term, but if the people running the country have their heads screwed on properly, they invent more efficient means of energy production/goods distribution.

not at all what the PTB want, they want everything centralised to control people,

which is why we have to do completely the opposite and de-centralise.

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No, UK house prices are immune from any form of economic reality

No, UK house prices are immune from any form of economic reality

I have to say that until the notion of widespread repossessions was politically acceptable I do think this will remain the case.

Since Thatcher, and subsequent governnents, turned the widespread homeowning dream into reality it has created a political voice too strong to be ignored. I do now think they will totally destroy what's left of the productive economy before they would countenance snatching back significant numbers of homes from occupants that can no longer, and never really could, afford them.

At the same time the gulf between bank credit money spent on houses and real money, earned with labour, and spent on food and warmth will continue to expand and only stop when it finally reaches breaking point.

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