August 2010
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Aaron Wissner part 4 of 4 on the State of the Economy, the Credit Collapse, and Deflation

Aaron Wissner describes the difference between the present recession and the recession (depression) of the 1930s; a positive vision of the future beyond the money crisis; and a proposal on how to prevent a collapse, provide jobs for everyone, and build community resilience. Note: I heard the idea about the teacher’s aides via a WSJ interview with Robert Shiller of the Case-Shiller index, not Peter Schiff as I mentioned. Both Shiller and Schiff, along with ten others, accurately predicted the recession by using proper money-flow models of the [...]

Aaron Wissner part 3 of 4 on the State of the Economy, the Credit Collapse, and Deflation

Aaron Wissner explains the difference between deflation and a recession and discusses: economic shocks, expectations, deflationary spiral, the contraction of the money supply, savings, velocity of money, private sector business sales, unemployment, confidence, and pessimism. He then talks about what to expect for the housing markets including: foreclosures, under water, housing bubble, total mortgage debt outstanding, bank credit, debt, promissory notes, assets, liabilities, Detroit, median price, jobs, work, employment, selling, rental, apartments, risk, Netherlands, and housing [...]

Inflation Deflation Debate Rages On: 2010 Economic Collapse Helping Americans Prepare for Hyperinflation The Division of individuals into inflation versus deflation camps I would argue, may be harmful to Americans that decide to believe wholeheartly in one over the other and act. For Example, purching real estate hoping for inflation to cure an over supply is a disaterous strategy. The realtity is, Price Inflation and deflation happen at the same time. We may see prices rise in Gold , Silver, Commodities but at the same time see massive declines in Real Estate,Stocks and [...]

Are The US And Japan Monozygotic Deflationary Twins Reared …

With millions of words already uttered and/or written on the topic of an inevitable convergence between the fates of the US and of Japan , there is a certain fatigue in the Broca area when merely the topic of deflation is uttered, … [...]

Japan: What Deflation? What Depression? – Seeking Alpha

There's a lot of unfounded talk going around these days about how deflation has killed the Japanese economy, as good friend Don Luskin pointed out to me the other day. This chart shows the year over year growth in Japan's   … [...]

GGN- Economic News :: August 12, 2010 Part 2/2

PLEASE SUBSCRIBE!!!!! (Money News) Experts warn that overall food-price inflation is inevitable, as Wal-Mart reportedly has already hiked prices amid a recent jump in wheat prices and the failure of the Russian harvest. The most immediate impact will be felt in the price of bread and bakery products but other food items which make use of grain will also rise, according to analysis from Verdict research. This includes some meat products where grain is used as animal feed. Meanwhile, a recent JPMorgan survey of supermarket pricing in Virginia showed a 5.8 percent increase in average prices at Wal-Mart, which represents the most significant sequential increase since the inception of the study in January 2009, the Business Insider reported. The survey compared a 31 item like-kind basket at a Wal-Mart Supercenter, Kroger, Safeway, Harris Teeter, and Whole Foods, the Business Insider reported. – (Yahoo News) The Federal Reserve is once again trying to put a floor under the US economy. Worried about the threat of deflation — or as Ben Bernanke & Co. put it, “measures of underlying inflation have trended lower in recent quarters” — the central bank said Tuesday it wold begin to purchase longer-term Treasury securities. This second round of quantitative easing is meant to lower mortgage rates (boost the housing market) and increase demand for bank loans (grow the economy). Yet many reading this must be thinking: What deflation? Prices of gasoline, food, health-care, education … [...]

M3 Inflation and Ireland: Deflation Sets In

My thought bubble on M3 Inflation is going to be developed further as time goes on. The basic premise is that the annual growth rate of money supply (M3) minus the amount money can earn in a year (short term interest rates) will approximate a ‘true’ measure of inflation/deflation. This type of measure is needed [...]

Deflation Portfolio Picks (CTSH, IEF, UN, SYK)

Not that there aren't counter-arguments to the possibility, but if you think the U.S. is in the same rut Japan was in then, it may be time to rework your portfolios for deflation protection. Here's a starter set for you, and the rationale … [...]

Tea with Nouriel Roubini, professor of economics.

Not all doom and gloom. The professor of economics on America’s banking reforms, the risk of deflation in advanced economies and China’s [...]

Beware the carry trade!

With interest rates in the US at historic lows, some economists are worried that Americans involved in the carry trade could drive down the value of the dollar. Senior Editor Paddy Hirsch explains how the carry trade works, and why some people are worried about its return to the [...]