What is it that’s got the central bankers spooked? IMO it is the threat of deflationary collapse.

$BCOM Weekly

$CRB Weekly – Note the horizontal Support/Resistance line where commodities were rejected at the GFC 2009 low.

DBC Weekly

Commodities have turned down again. Deflation is once more rearing its ugly head. A deflationary collapse is the result of defaulted debt.
What debt?
Central banks. Corporations. Real Estate. Householders consumer debt. There are others.

Where is this happening?
USA. Europe. Japan. China. Australia. Canada. There are, of course, others.

Is a deflation bad?
Yes. It becomes a self perpetuating spiral that feeds on itself. Tax revenues fall and government payments rise. Anyone who has read stories of the “dirty thirties” great depression will have an inkling of what’s in store if there is a deflationary collapse.

What are the central banks doing about it?
More of the same. First they lower interest rates. Then they will print. The USA will strive to lower the value of the Dollar.
Since commodities are priced in dollars, a falling dollar will support commodity prices. A rising dollar is big trouble.

What to do?
Save cash. Horde precious metals. Keep out of debt. Stay informed.

That’s my rant for today.