deflation

The world has experienced three periods of extreme financial dislocation in the past century, 1929, 1973, and 1990. Two of these have been deflationary. While most observers have their eyes firmly peeled on 1973 and its aftermath, 1929 and…

That's what Sir Howard Davies, a former deputy governor of the Bank of England (BoE), has to say.

Ben Bernanke claims to be an expert student of the Great Depression and its causes. Therefore, many feel comforted that he knows what to do should in order to avert a repeat of 1929. But does he know how to prevent a repeat of the Japanese…

No! The Fed is not crazy. Market participants are forgetting that the U.S. economy is still not out of the woods. Moreover, many financial institutions are drowning in writedowns. None of this should be expected to change anytime soon.…

This is an important question, because our central banks are the ones behind the rise in inflation, not OPEC, oil companies, or greedy corporations. If one must point the finger, point it at central bankers. "Inflation is always and…

You know, the Federal Reserve stopped publishing M3 for some strange reason back on 23 Mar 2006.At the time, they said the following:M3 does not appear to convey any additional information about economic activity that is not already…

It has been my assertion for some time that writedowns and the attendant unraveling of the financial system is the most troubling problem during this credit crisis. This process is deflationary by its very nature because credit contracts.…

This is what consumer inflation has looked like in the United States.

Today, the Home Builders Federation came out to ask Mervyn King and the BoE to cut rates 50 beeps. The Telegraph reports:Housebuilders are urging the Bank of England to cut interest rates when it makes its monthly decision tomorrow,…

Global financial institutions are deleveraging because they can't build enough equity capital any other way except by going to Asian and Middle Eastern sovereign wealth funds, cap in hand. So, the Fed and the Bank of England (BoE) have…