Tuesday, July 14, 2009

Deflation Crash Warning

I have been warning of the deflationary crash for a long time. nothing has changed. -st0ckman

The inflation hobgoblin is a political ploy by the Republicans to derail Obama’s recovery plan. And, in some respects, it’s working. Public support for a second stimulus package has withered, and with it, any hope for sustained rebound. Pressure on wages and prices are growing while the effects of deflation are becoming more and more apparent. Delinquencies, defaults, bankruptcies and foreclosures are all up, while state budgets buckle and joblessness mushrooms. The Republicans are following the neoliberal handbook, trying to crash the economy so that public assets can be privatized and public services terminated They’re being helped in their campaign by bailout-weary citizens who don’t understand that short-circuiting government spending during a deep recession can precipitate a bigger catastrophe.

Full article:
The Future Is Deflation

Indications: U.S. futures up before Goldman results, sales data

U.S. have futures rise on Tuesday as traders wait to see if the enthusiasm for Goldman Sachs Group that drove the prior day’s feat is justified by the investment bank’s results.

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