This essay attempts a review of the economics – and the prevailing economic thinking – which have brought us to our present pass of high-leverage and heavy debt-dependence. It helps set the backdrop for an in-depth look at markets which will follow shortly…
Category Archives: Deflation
With many commodity prices touching multi-year lows and with mounting fears for real estate valuations and car-lease residuals, numerous commentators seem convinced that ours is now a deflationary future. QE failed to raise CPI by anywhere near what the spin promised, they say, partly because it was ‘unsupported’ by fiscal policy. Therefore, if we don’t get Roosevelt, we’ll get Brüning, they conclude, and, meanwhile, we need the Fed to cut rates below zero, said one prominent pundit on April 5th. We replied:-