China: On the Way to a Deflationary Crisis

By Sam VakninAuthor of "Malignant Self-love: Narcissism Revisited"Consumer price inflation in China is down to 4.2%. The growth rates of industrial production (output), exports, and imports are all down. China is on the path to deflation. Mounting sovereign debts crises...

Deflation in the USA and its Effects on Consumption and Investmen

By Sam Vaknin Author of "Malignant Self-love: Narcissism Revisited"Interview granted to Bankrate.com, August 2010 Q. Why would deflation happen in the United States? A. For deflation to happen in the USA, an unlikely confluence of economic developments and policy errors...

Deflating America

It is painful as Presidents since Clinton have warned. In fact, the correction began as Clinton was leaving office. It got pumped up by Bush war spending and legalized tax evasion. Then, big government came to the...

Extraordinary economic times require extraordinary measures

Allowing the Bush tax cut to expire is a no-brainer. As some leading Republicans say, it will reduce the debt by $13 trillion. While economists are fearful about deflation, my view is that they are operating on an...

Deflation, is that like depression?

Falling prices and wages happens when there is a smaller market for goods and services and people are overpaid when labor costs are compared to the global average, assuming equal pay for equal work. That is...

The Next Leg Of Deflation Has Begun

What does deflation look like? " Recognize this chart? You really should. It's the price of oil in 2008, which started falling precipitously in July, presaging a violent, deflationary crisis a few months later (pay no mind to the September spike -- that had something to do...

Deflation explained

Deflation occurs when prices are declining over time. This is the opposite of inflation; thus when the inflation rate is negative, the economy is in a deflationary period.A decline in general price levels, often...

Hey Brother, Can You Spare $4.00 for a Gallon of Gas?

I put 10 gallons of gas in my pickup the other day. It cost me about $2.50 more than it did the week before.Not a large amount. But take that amount times the nearly 200 million drivers in the United States, and...

Deflation Sources

The problem is debt. Too much debt in the private sector set off bear markets and a bank crisis. Too much debt in the public sector will cause big problems too - a default, and finally hyperinflation, which is...

Recovery a Hoax

Traveling through Europe the last couple of weeks brought a closer insight in the economic development underway.Meanwhile the US Dollar has fallen in an opposed direction compared with stocks, gold, and the rest of...

Banks in Spain World's next Financial Drain

Spanish Housing market is much worse than people think. “Spanish banks are among the strongest in Europe,” reports Forbes Magazine.The real estate crash in Spain is worse than widely is believed, while Spanish...

Consumer Retrenchment Cause for Deflation

First and foremost is the dramatic switch by consumers from a 25-year borrowing and spending binge to a saving spree that should extend a decade or more. In the 1980s and 1990s, consumers regarded their soaring...

This Depression is just beginning

If 18-year Real Estate Boom-Bust cycles are measured 14 years to the top (August 2007) 2 years to the edge, and 2 years to the final bust, this one is obviously not over yet. "Skip the Happy Talk This...

Could Hyperinflation Happen?

Theoretically, yes. Hyperinflation is a scary thought. Technical definitions vary, but while it could be argued that mild inflation can be a sign of a growing economy, hyperinflation is certainly never a good...

Inflation or Deflation?

The economy faces both the deflationary forces of the worst recession since the 1930s and the vigorous inflationary response of the Federal Reserve, which has in effect cut interest rates to zero and rapidly...

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