DEFLATION FROM WHERE: Treasuries Rally Amid Worries of Slower Economic Growth - Barrons.com
As for deflation, one wonders where it will come from?
Sure, there are some nice operating margins, but are the Chinese going to charge less for the goods they produce (not only are their domestic costs rising but any currency revaluations of the yuan will work against lower costs for US domestic consumers).
Global commodities are up and if there are successful Asian and developing economies, their regression to the consumption mean has a lot more of a way to go on the upside.
The developing world is highly in debt. I've yet to hear of over-leveraged consumers or businesses getting lower rates.
Lower housing prices have seemed to mask US inflation numbers for quite a while - but is this really how we want to assess prices? Etc.
Sunday, May 15, 2011
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