I am glad you mentioned deflation. Just a few min back, I was casually listening to the 'inflation talk' at the 7.5% headline number reported at the market open and people are saying sky is falling!! It is to the contrary. If you look at Japan you should know what deflation does to a society. It is deflation we need to worry about not inflation (in the US at least)!
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That is absolutely correct. People complain about inflation, thus believing that deflation is much preferred. They do not realize that the inventors of QE, Japan, are mired in a 25 year deflationary spiral. If Central Bank policy actually led to inflation, they should be at 80% with all they did.
We are seeing cyclical inflation due to supply chain disruption along with a bull market in commodities. However, we are in a secular deflationary cycle, one that started more than 20 years ago.
Communication, information, music, and video all deflated. We are about to see transportation, medical, upper level education, and construction experience similar paths.
The other factor is developed countries have a major demographic crisis brewing. This is also inflationary.
Thanks for the inflation number. I had not seen it yet but figured it would go up. The BLS changed how this are determining it which was going to push it higher. They are weighing things different suddenly.
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https://www.visualcapitalist.com/global-debt-to-gdp-ratio/
257% debt to gdp ratio! Several generation of folks completely demotivated from investing.
China is reported to now be over 300%. Hard to know since their numbers are even more fictitious than most governments.
A lot of European countries on there. The non EU banks wont touch European debt from what I hear. The EU is in really rough shape.
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