China has moved to only buying short term treasuries. There is no demand for the longer term securities so the FED announced it will buy them starting this week (this means that the FED has been buying them for some time). The exit from the dollar is in it's early statges. The dollar may surge agian if there are large stock market sell offs but the deal is done. The dollar is a dead man walking.
This deflation is a transitory. How can you not see that oil went down due to investors need for liquidity. Oil prices will not go back up as high in the recent past, but they will be up enough to make inflation a factor. Open your eyes, retailers are selling things at 'GOING OUT OF BUSINESS PRICES". After the first quarter next year, go to your local mall and see for yourself how many retailers will be out of business. The remaining retailers will have to charge real prices to stay in business.
Have you eaten out lately? If it was not Mac Donalds then it was not cheap. Have you see your grocery bill go down? Who cares if home prices are falling, nobody is buying. Who cares if cars are cheap, no one is buying. The consumer is trying to pay down debt, and what little spending they are doing will be effected by inflation.
People are buying gas and food, and those items will not be cheap.
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Have you eaten out lately? If it was not Mac Donalds then it was not cheap. Have you see your grocery bill go down? Who cares if home prices are falling, nobody is buying. Who cares if cars are cheap, no one is buying. The consumer is trying to pay down debt, and what little spending they are doing will be effected by inflation.
People are buying gas and food, and those items will not be cheap.