Kinja Rules

Friday Outlook: Commodities, Emerging Markets

Thank You!

The Global Economy: Is Deflation the Next Macro Story?

Most Excellent Claus! This has been a theory of mine for awhile. We may have to go through a time of hyperinflation 1st as Billions are being printed as we speak. I do seriously agree on the demographics. As well as the 1st to come back will be emerging mkts. I like your word, dissavings...As it will be just that. I also agree that the older demographic will be more adversely affected. These are the very people who were in the fixed income that is not trading now. In the US there was a 90 yr old woman who shot herself last week b/c of Foreclosure...The Global Traders are were Out @ the end of last yr mostly. The other group that will suffer Greatly is the Retirement Fund Crowd in the US. This is what is supporting the US mkt for sure.

Your insite is excellent but you try to write like a text book. Somewhat difficult to read.

As you stated the Rescue by the US was the only option. On the other hand, I think the US $ will fall. We just keep printing dollars. Europe will be Forced to do some similar package or watch Rome burn, as well as the Euro. The Real Blood is just now showing up on the Real Streets. As this happens, Asia, South America, Central America, Middle East, will be shoved up against the wall or kill the System. Much like the Ugliest Global Financial Crisis has played out very quickly, it is possible to go hyperinflation just as quickly. Then, full on deflation as consumers can not pay for anything on the cash adjusted basis. Note EBAY...There is an Exodus that I have never seen in all my life. Buy nothing you do not need, be prepared as your neighbors lose their minds. This is a site that was prepared for Children to help them understand the World better. The Social Crisis below is affecting many kids as well.

kcet.org/socal/2008/09...

This will be a defining time in your life as well as all others.