Loading ...Beware a Deflation Bust
If this chart is any indication… I think Fully and the “deflation” crew should be listened too!
Gold going up is camouflaging this fact.. and until silver breakout above 21$… a sudden drop in inflation rate is a possibility.
Edit. Gold not camouflaging it.. but actually showing there is an underlying issue somewhere… maybe i got this all wrong… #theories
Edit: adding QE response… when does the Fed resort to QE? Looks like inflation goes negative.. scares the hell out of them!
I think Gold does well during deflation
Cash is King But Gold is God
🙂
Generally speaking AU is FICKLE and not a particular good deflation hedge…https://www.bullionvault.com/gold-news/deflation-gold-021520172
In the 1930’s gold did very well, silver not. With money supply growing at 8%+, it is difficult to imagine deflation on a long term basis however.
Yes guys.. gold is king.. and deflation could be a bust ..like 2008 where inflation rate goes negative.. yikes! Then QE… lots of it.
At some point the natural unwinding of the debt either by payback or default will overwhelm anything the fed can do
Pumping money into zombie banks can keep them afloat but they cant lend it into the economy any more…see Japan
Sovereign default is the ultimate deflation…
There has been lots of sovereign defaults… soo captivating…. including some for the USA:
Americas United States 1790 Crisis began in 1782. Ended by the Compromise of 1790 and the Funding Act of 1790.[17][18]
Americas United States 1798 Quasi-War
Americas United States 1862 The Greenback Default[19][17]
Americas United States 1933 Executive Order 6102[2]
Americas United States 1971 Nixon Shock [20][21]
Americas United States – 9 states 1841–42 [2]
Americas United States – 10 states and many local governments 1873–84 [2]
And one for Canada!!!
Americas Canada – Alberta 1935 [2]
https://en.wikipedia.org/wiki/List_of_sovereign_debt_crises