Last Updated Stories in deflation

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...

Swine flu could tip world into deflation: study

The UK media has been full of swine flu (H1N1) again this week The number of people contacting their doctor because they think they have swine flu. " Recovery could be delayed by a couple of years in a country like Britain, the worst hit in Europe and is quickly spreading...

Consumers’ Change of Heart

The vast credit expansion that lasted from 1945-2007 now has contracted till an insignificant quantity, as people’s hearts and minds have been thrown into reverse. During the bubble years, more and more...

Inflation Worse Than Financial Crisis

On my latest post ‘Obama’s Car Business’ Paschen commented:“A lot of money that has been burnt for nothing, and still no reforms in sight. Tax payer will have to pay for all this for decades and maybe...

EVILS OF A PUBLIC CENTRAL BANK AKA THE USA FEDERAL RESERVE

""A private central bank issuing the public currency is a greater menace to the liberties of the people than a standing army...We must not let our rulers load us with perpetual debt." Thomas Jefferson,One of the...

'Helicopter Ben' Reborn as 'Banana Ben' Bernanke

Ben Bernanke earned the nickname "Helicopter Ben" for comments he made in a November 2002 speech, Deflation: Making Sure "It" Doesn't Happen Here, delivered at the National Economists Club in Washington, D.C. More...

Foreign buyers no longer binging on long-term U.S. debt

The lack of foreign investment in long-term US assets is not going to go up anytime soon according to a leading trade economist. Some experts say that this is a necessary part of the 'rebalancing' of an economy on the downward trend as the US trade deficit is unsustainable,...

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