Evidence Mounts That Deflation Is A Greater Risk Than Inflation

The Story Recently

Evidence Mounts That Deflation Is A Greater Risk Than Inflation Jun 7th 2012, 01:58 By Josh Cohen: There has been much talk among analysts about the risks of inflation due to the Fed 's implementation of Quantitative Easing . At this point, however, as the US economy appears dangerously close to stalling, all signs indicate that - while we are not in deflation now - we are certainly trending a lot closer to deflation then inflation. Let us consider some of the indications of this trend in charts. First, the 10 year yield has trended steadily downwards, a sure sign that investors are not worried about inflation: (click to enlarge) Second, both crude oil and copper have seen sharp downdrafts recently. In my mind, of all the commodities , copper and oil are the single two best indicators of economic activity and the overall health of the global economy: (click to enlarge) (click to enlarge) Third, the US economy continues to face a large output gap. An "output gap" essentiallyComplete Story »

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions