Dargoola on Feb 17, 8:29 AM said:
0
4
Flag as Offensive
Vigilantes ride again. If the trend gathers steam then the second phase of the crisis has arrived.
This strengthens my contention that we’re in “The Frankenstein Economy”: deflation and inflation co-existing side by side, creating a perfect storm. Deflation of key assets such as real estate, social security, medicare pensions and 401Ks. Inflation for key commodities, taxes of every stripe, food, energy, national and homeland security, credit healthcare etc...
But this applies to sovereigns as well as individuals.
We’re seeing the creeping results of debt-deflation around the world (Japan!). Sovereigns will compete for more limited funds that they need just to roll over and service debt. Ultimately translating into higher interest rates for corporations as well as govs. All the while the tax base will continue to shrink (soveriegn deflation).