The Third World is dragging developed nations into the deflationary abyss
Barchart/Seeking Alpha. Dec. 3rd, 2014:
"What do each of these countries have in common? Slow to negative economic and wage growth and extreme deflationary pressures" [And massive Ponzi debts]
"...we have become conditioned to believe weaker growth is a good thing. Why? Because it means more central bank "action" to prop of stock markets in the near-term."
"Their [Central Bank] goal is simple: drive the expected future return on all asset classes to 0% or even negative levels. This in turn will enable governments to continue to borrow beyond their means and convince the masses that things are great and they should spend what little money they have saved because stock prices are going up. In short, it is a policy of borrowing from the future to satisfy the whims of today"
1.85%
Spanish bond yields are now below 2%, lower than the United States (2.20%):
Spanish bond yields are now below 2%, lower than the United States (2.20%):
Sure, whatever:
Central bank monetary expansion doesn't drive inflation to zero, quite the opposite - only corporations importing wage deflation from the Third World can do that. But as always, the country club needs to blame someone else for the frankenmonster they created.
