SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?


To: mishedlo who wrote (48529)3/23/2006 1:30:14 AM
From: Elroy Jetson  Respond to of 116555
 
Its mostly passable. If you don't speak the language you can check for trouble spots by using another program, or the same one, to translate back.

*****************************

The deflation is in the cards

Yes the readers, that they are correct. The answer to the "great question of Flation" it is DEFLATION. I don't go to the wimp toward it was and I don't say the "stagflation", and the rest assured it it is not the "inflation" which it means that the "hyper-inflation" those many consider that coming is completely ridiculous.

Before we build the box of the deflation, I think that it is hour for a new characteristic. We will call this characteristic the "laugh of the week." I will be slack with this. It could have three to the week or any one week depending of how I sit down. The first should see the laugh of the week it is the reverse revolution! by Mark Fiore.

The case for the deflation: History Of the Fund

To understand the case for the deflation we should be returned behind to the hands of the time. The year is 1914. WWI exploded in Europe and the U.S.A. remained outside of him by three years. As a result of being a gold of the "I grant asylum sure" it poured in the United States and the reservations of gold of the U.S.A. rose 64% while Europe exchanged its gold for the American goods. For the moment in that the U.S.A. entered the war of Europe it was a lot of ravaged. The U.S.A. escaped unhurt. After the war finished the commercial excess of the U.S.A. it continued being height and the allies began to compensate their debts of the war.

The U.S.A. experienced the quick credit extension as a result of the wave in reservations of gold. Between 1914 and 1920 the U.S.A. bent its extension of the credit. During those years of war, the investment in machinery and the team increased in 205% and the value of the exit of the growing durable goods of the excess of 250% that this wave in capacity led to the excess of general provision of goods before 1926. During the second half "of the credit of the years 20 roaring" enlarged in the moderate rate but the had already been harmed. The economy not could a longer to invest profitable in the team so the quantities of increase of money poured in the action markets. The bubble finally exploded in 1929 in that the growth of the benefit (earnings) he/she could not keep step with ratings of rising of the action market. The part prices collapsed, contracted credit, and the proliferated bankruptcies.

Express ahead at the an or 80. After the landslide of the agreement of wood of Bretton in 1971 with Nixon that closes "the window of the convertibility of the gold" joined with the enormous extension of the exit in Japan, the Japanese reservations of modernity increased 260% among 1985 a 1988. Those dollars worked a peak of loans in Japan as well as incredible bubbles of the characteristic and bubbles of the action market. In 1989 the index of Nikkei enarboló on 38.000. Hardly like in the U.S.A. in the last years 20, the earnings could not keep step with ratings of the market and the part prices began to collapse. Japan attempted in several occasions to stabilize the markets with the injections of the liquidity but of the Japanese characteristic values collapsed by 18 serial years and they are still falling when this writing. Japan enarbolado in 1989 and he/she hardly can now finally to leave her.
. . .