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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?


To: Mike Johnston who wrote (75381)2/28/2008 7:39:44 PM
From: Dr. Voodoo  Respond to of 116555
 
Deflation will arrive after the dollar loses most of its value and is replaced or denominated.

Or, global recession reduces demand for commodities, the presumption helicopter ben is counting on, circa 2001.

Thus for deflation to land heads-up, perhaps all is needed is the officialdom to acknowledge reality, followed by drop in consumer spending. This would then be followed by worldwide panic in dollar pegged/US dependent economies.

If said economies can stand alone, then no such worry exists, dollar approaches asymptotically real value of dollar pegged supply economies until global hedgemon is no longer.

Political will, electorates with pitchforks in hand, and 401K's in the red, along with gimme gimme free healthcare and corporate media, will rest assuredly burn the mesopotamians, screw the rich, soak the poor and ensure we walk on both sides of this line and muddle through until global material wealth transfer is completed.

V