From today’s Special double FED issue

“Which brings me to the present: It’s not the threat of terrorism, an anemic economic recovery, or an impending War keeping the Fed up at night: Its the terrifying prospect of DEFLATION. Real interest rates are now below zero; China and Japan are exporting price decreases. It isn’t too hard to imagine a scenario where deflation lands here. If the insatiable demand of the US consumer ever gets satiated, there could be real trouble.

So the Fed is, once again, flooding the system with liquidity. Their rhetoric makes this imposingly clear: Fed Governor Bernanke’s speech before the National Economists Club in Washington, D.C. yesterday was titled “Deflation: Making Sure “It” Doesn’t Happen Here.” (See chart in docs below).

This will be the 3rd time in 4 years that the Fed is fueling a Nasdaq launch. We all want to ride this rocket for all its worth. But I cannot help but recall that the last 2 times this scenario occurred, it ended abruptly – and quite badly . . .

You can see our full report on the Fed’s fear of Deflation and how they have been using their tool of liquidity here:
Word doc
PDF

Category: Current Affairs, Finance, Politics

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

One Response to “Deflation: Making Sure “It” Doesn’t Happen Here”

  1. ESTE ARTI- CULO esta bueno!

    Jessete :)