Ben Bernanke studied the Great Depression for eight years. One thing he learned: “Deflation is very bad. When it starts, it does not go away. After it starts everything falls apart. Prices go. Jobs go. Banks close. Businesses close.” The economic world goes down, down, down. That is why Bernanke has poured two trillion into [...]
The Chinese Sub-Prime Disaster is Coming From Bloomberg Workers toil by night lights with hoes, carving out the signs for Olympic rings in front of an unfinished 30,000-seat stadium, bulb-shaped gymnasium and swimming complex in a little-known Chinese city. Loudi, home to 4 million people in Chairman Mao Zedong’s home province of Hunan, is paying [...]
When patients are dying, their blood pressure drops very low as their heart refuses to pump. The same thing occurs with economies. We see it clearly in The Law of Supply and Demand. Demand greater than Supply, Prices Rise. Demand less than Supply, Prices Fall. Deflation is a sinking of prices for everything, from workers [...]
We have seen it in Japan for twenty years and now we are seeing it in the U.S. and Europe… DEFLATION. When prices keep going down people stop spending money. When people stop spending money, stores close, factories close and the economy slowly shuts down. Deflation happens seldom on the World Economic Stage, but when [...]
Deflation is a sign of extreme economic weakness. I mentioned it in an earlier article. When every price drops, what do you do with workers? Answer: Fire them! Why keep a store open if no one will buy? Why produce goods or services if no one can pay? Deflation is the prime criteria of a [...]
For the last seventy years, millions of economists around the world have dissected the economic data involved in the Great Depression of the 1930′s, searching for the causes of this catastrophe. These economic scientists have come up with a long list of probable causes. Using any search engine, an interested student can easily discover what [...]
World stock markets are imploding.
Commodities are imploding.
Is deflation coming?
