Saturday, June 02, 2012

Are we in a deflationary crisis/depression?.

The Fed is clearly battling deflationary forces.

1. Contracting credit
2. Falling home prices
3. Secular bear market for stocks
4. Unfavorable demographics
5. Falling bond yields

All of those things add up to deflation.


One of the comments from this excellent discussion thread over at the Permanent Portfolio Forum.

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