deflation

An increasing number of countries are recording negative year-on-year inflation numbers. I reported first on Spain, then on Switzerland.  Add the U.K. to the list as well. Deflation returned to Britain for the first time in nearly five…

This is a re-post that I hope serves as a reminder that although we are NOT talking about a liquidity crisis in the financial sector, but rather a solvency crisis, liquidity remains very much a concern. This post, despite being 6 months…

First Spain, now Switzerland: Consumer prices in March were down 0.4% from a year ago, the Federal Statistics Office said, a 50-year low. The country has been close to deflation all year, with inflation having fallen from a peak of 3.1%…

Spain is one of the original four bubble economies to implode.  This group includes the U.S., the U.K. and Ireland.  Unfortunately for the Spanish, in the wake of their property crash, things in Spain are looking particularly bleak with…

James Montier has a very good piece out via John Mauldin ([email protected]) on the need for real economy stimulus over financial sector stimulus. The quote I find most memorable goes to the heart of our debate about the…

According to this Bloomberg video, China will enter deflation when data is released later today. Deflation may stay with China for all of 2009 because of lower commodity prices:

Update: 18 Mar 2008. I am reposting this entry from Feb 10th because it is relevant to the need to liquidate insolvent institutions like AIG that are now getting bailouts.

Goldman Sachs London conducted a poll of fund managers today that had interesting results. The poll demonstrated that fund managers are expecting deflation more than inflation and that they expect the U.S. or Asia to escape the downturn…

The United States Department of Labor released its monthly data on inflation today at 8:30AM. The data showed that inflation rose only 0.1% over the last year, the lowest reading since 1954. I should note that oil and food prices continue…

This is the time of year when everyone tends to look back and sum up the year in one way or another. I have been doing much of the same. In keeping with that theme, I have taken a good look through my nearly 1400 posts to get a better…