DEFLATION IS HERE

BI ^ | 1-7-2015 | Mike Bird

[blam]

Mike Bird

January 7, 2015

After a year of anticipation, deflation has finally arrived in Europe. Consumer prices dropped 0.2% in the year to December.

The consensus was that inflation would drop to about zero or -0.1%.

Inflation in Germany, Europe's healthiest large economy, is at just 0.1%.

Spain has already recorded months of deflation, and its consumer prices fell 1.1% in December from the same time last year.

With oil prices still tumbling, it's clear that falling consumer price inflation still has further to go.

Nobody is disputing what pushed inflation over the zero mark. It's the decline in oil prices:

(snip)

[dennisw]

Not in food prices!!! Definitely up on the retail level

[blam]

Deflation And The Year Ahead

[Diogenesis]

The EXEMPT US Congress could care less.

They will spend TRILLIONS on useless agencies
to remove more Freedoms from the sheeple
whom they actually were elected to serve.

[CommieCutter]

Yeah...maybe deflation in the stock market and gas prices.

I am hopeful food will follow gas prices.

[yldstrk]

Long overdue, sick of paying $9 for a $4 carton of coffee

[ScottfromNJ]

Deflation is a myth. In order to have deflation central banks would physically have to destroy currency and reduce the currency supply. Money does shift though, creating the illusion of deflation when the resulting price fluctuations hit specific sectors of the economy.

[Go Gordon]

Tell that to the Russians. Deflation - yeah right.

[grania]

in order to have deflation central banks would physically have to destroy currency

Isn't most money out there just numbers in a computer? When stock values go down, or some entity holding value goes bust, that perceived value evaporates.

It's only money when one has physical possession of it.

[Celtic Conservative]

No, we call that “implosion”.

CC

[TBP]

So if inflation is bad, why is it bad to deflate the inflation?

[Bloody Sam Roberts]

Be warned. Deflation is the first phase of a gigantic economic collapse. Keep your eyes and ears open. It is coming here soon. Best to be prepared.

[Red Badger]

Then stop using K-Cups!...........................;^)

[woodbutcher1963]

Now, would be a great time to get rid of the ethanol mandate in our fuel. However, I have not heard of one politician dare speak about it. Archer Daniels Midland and the Iowa caucus scares the heck out of them. Gutless weasels.

[yldstrk]

What? I am buying Folger’s French Roast.....

[central_va]

The ponzi scheme called fractional reserve banking doesn’t work in a deflationary cycle.

[Red Badger]

Five dollars at Big Lots!.....................

[yldstrk]

No joke? I’ll have to find a Big Lots....

[Red Badger]

http://www.biglots.com/store-locator?zipCode=66112

[precisionshootist]

"deflation", no it's called lower prices. The price of fuel is dropping closer to where it should be which will lower the price of nearly everything.

No matter what the economists say, this is a GOOD thing.