enigmaman

Scary Drop in Velocity of Money: Is Deflation Knocking?

The questions was " Is deflation knocking?" to be sure it appears it is but 6you will not hear this from anybody at the Fed or Admin, just look at what is happening on the street, big discounts and incentives to spend are everywhere, except where government regulation is involved, food, energy, taxes etc. Deflation has caught Ireland, E Europe, Spain, and seems to be spreading, what happens to all economic projections if a fair number of economies fall prey to deflation as they seem to be, if you follow the bread crumbs where will they lead. Helicopter Ben and Obama are throwing money around and what is happening to it, where is it going, banks are hording it, state governments are using it to prop up their local economies, the Fed government is using it to grow itself, how much has really tricked down into the economy for main streets benefit, used to create long term demand not very much. Infusion of trillions + no demand= more debt + lower prices= disaster