Gary Shilling Continues to See Deflation on the Horizon [View article]
Gary Shilling seems to be the only economist around who takes into account the old-fashioned notion of supply and demand. There has been oversupply of everything for decades, and the only way this oversupply has been absorbed was at the expense of ever-increasing debt levels.
Demand was artificially created without any thought ever how it will be paid for other than completely mortgaging our future. All the so-called smart people leading us in Government, in industry and Wall Street have been looking only at one side of the equation: just keep stimulating demand by enticing the whole country to create a vertical debt curve, and everything will be fine. Now the debt pyramid is collapsing under its own overweight. And our leaders still don't think that there will be a day of reckoning??? Think again.
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Gary Shilling Continues to See Deflation on the Horizon [View article]
Demand was artificially created without any thought ever how it will be paid for other than completely mortgaging our future. All the so-called smart people leading us in Government, in industry and Wall Street have been looking only at one side of the equation: just keep stimulating demand by enticing the whole country to create a vertical debt curve, and everything will be fine. Now the debt pyramid is collapsing under its own overweight. And our leaders still don't think that there will be a day of reckoning??? Think again.