Deflationary Vs. Inflationary Recession

2008 was a deflationary recession while 2022 will be an inflationary recession.

 

 

China is exporting inflation

China has started to export inflation to the rest of the world.

 

World population is in transition phase

Demographics are becoming deflationary. We are just like bacteria.

Peter Schiff Sarcasm on Deflation: Falling Consumer Prices in Sweden

Peter mocks with lower gasoline prices in Sweden. Lower oil prices are not a bad thing, but a good thing. Remember, falling prices are only good for consumer goods, but bad for investments.

Warning: Deflation is on the horizon

As we know, Ben Bernanke sinked the markets yesterday and this has consequences.

As the premium on silver of some silver miners soars to 30%, we are getting to a point where mining companies are actually losing money, especially when they have mining projects in development. At these prices, nobody is going to invest in exploration companies as they would lose money in doing so.

On the other front, namely bonds, we see the U.S. treasury market decline in price while yields rise.

These high yields in bonds and mortgage yields will in turn crash the stock market and the housing market respectively, if the Federal Reserve stops its monetary easing.

These events are very deflationary, if Ben Bernanke doesn't up its QE, we will need to position ourselves in deflationary assets like cash and bonds.

Michael Pento warns for deflation in this status update.
http://www.pentoport.com/mp3/MRC130619.mp3

Real Deflation Confirmed by Mike Maloney

In this video, Mike Maloney confirms that deflation has already set in. If we subtract base money (balance sheet fed) from M2, we get a 25% contraction. This has never happened before since the Great Depression and it evidences the fact that quantitative easing doesn't work. It just stays on the balance sheets of the banks.

And we all know what comes after real deflation, hint: it starts with an "H".