Housing, Auto and manufacturing lead the worldwide depression – experts try to find inflation in outright deflation
Fred Day
Mar. 29, 2007

The fact that India and China are prospering on outsourcing and Foreign Direct Investment dollars and euros, is deflationary. All the hype about Asian growth is based on borrowed capital from the West and supply cheap labor to the world. Lowering the cost of labor is not inflationary – it is outright deflationary.

The fact that people cannot pay their mortgages is also deflationary. The fact savings rate in America is negative is also deflationary. The fact that oil price going up – on the surface it is inflationary but in effect it acts as a new tax and leaves little for common people to spend on discretionary items. It is deflationary.

The economy has fooled all. No one understood the stagflation for decades. And now, no one understands the deflation. Housing, Auto and manufacturing lead the worldwide depression. Basic material prices are plunging. The oil is rising because of geopolitical reasons. Gold is rising because smart investors are looking at the financial meltdown.

Housing, Auto and manufacturing lead the worldwide depression – experts try to find inflation in outright deflation
Fred Day
All the hype about Asian growth is based on borrowed capital from the West and supply cheap labor to the world. Lowering the cost of labor is not inflationary – it is outright deflationary.
READ MORE>>

The financial meltdown continues – sub prime mortgage collapse spreads into prime – the whole economy is reeling
Peter Oberois
The effect of mortgage default and foreclosures are so deep and far reaching that the whole economy is reeling under the pressure. A total financial meltdown is underway while Fed has just realized the magnitude of the problem.
READ MORE>>

The stealth deflation has fooled everyone including Fed – the April crash in stock market will only open eyes of Wall Street Gurus
Sam Adelton
The stock market has entered a nasty state of rapid acceleration on the downside. This will end after a massive crash in April. Historically April is the worst month for the stock market – worse than October!
READ MORE>>

The stock markets across the globe have started a very nasty down leg that can end up in serious meltdown and crash
Peter Oberois
Lower consumer confidence, lower business spending, mortgage defaults, collapsing home prices, bankruptcy among banks, lack of solvency of FDIC, huge budget and trade deficit, Social Security and Medicare fund problems – all are reasons for worry.
READ MORE>>

A spike in crude can cause the April crash of sock markets across the globe – higher commodity inflation and stagnation as well as deflation in most sectors
Fred Day
A limited military confrontation with Iran can create a spike in oil market to $100 a barrel. That in turn can cause the April 2007 crash in the stock markets across the globe.
READ MORE>>

A massive rise in durable goods order may boost dollar and stock market but economy suffers from lower consumer and business confidence
Karen Zuba
The rise is cyclical and will be short-term boost for the stock market and perhaps a relief for dollar index. But the economy is suffering from long-term problems.
READ MORE>>

Federal Reserve determined to keep rates on hold – a catastrophic move that can cause deep recession or depression and take Dow below 7,000 by end of 2009
Marla Gurthrie
In 2009 we will look back and understand what big a mistake the Fed made. It will be too late then. Fed is not seeing the real problem – the stealth deflation that is taking control of the whole economy.
READ MORE>>

MORE ARTICLES >>