JAN 8, 2015
with Charles Hugh Smith & Gordon T Long
27 Minutes - 32 Slides
Charles Hugh Smith and Gordon T Long discuss the Achilles Heel of Central Bank Policy; Deflation. They feel it will be a central theme in 2015. It will foster new central policy initiatives which the financial markets will react violently to.
Charles Hugh Smith defines Deflation in a different manner than most which leads to some very interesting perspectives and conclusions.
"Any increase in the purchasing power of nominal wages".
Inflation creation when the business cycle needs to contract.
i.e. 2% targets during systemic deleveraging.
The store of Purchasing Power is true WEALTH which governments are transferring.
Easy Credit Creates Excess Supply & Demand Which Eventually Reaches Equilibrium
== > THE GLOBALIZATION TRAP