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Contraction leads to deflation

Hang on to your hats. Somebody has to let some of this alleged capital out in to the open or the gig is up. It's nothing to hold on to, but where to go with it? http://www.msn.com/en-us/money/markets/dow-jones-drops-on-crude-concerns/ar-BBo472u?li=AA9ZWtY
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BA Deere
Honored Advisor

Re: Contraction leads to deflation

There`s a "crisis worse than ISIS", that`s the derivatives mess.  The 'too big to fail banks" aren`t going to be bailed out by a president Hillary..well of course not, the depositors of banks will shoulder that with a "bail in", thanks to the Frank-Dodd Act.  This deflation Kabuki dance that has everyone laughing at the hyper-inflation prognosticators while they fill up with $1.50 gasoline is just the calm before the storm.  I think yes, they can auger this pooch into the ground and Saudi can be the last man pumping $20 oil.  But, some liquidity is going to have to be put into the market, or we will have a flat out 1930`s depression. 

 

Inflation is the last shell in the magazine, so it`s understandable that the fed is relucant to prematurely fire it.  Maybe the smoke and mirrors can continue past 2016, maybe producer`s balance sheets can be bleed out into the end of this decade, I`m not going to be the one to put dates on things.

 

http://www.globalresearch.ca/a-crisis-worse-than-isis-bank-bail-ins-begin-your-life-savings-could-be...

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