Wednesday, May 20, 2015

Europe Leading Global Deflation

The global economy has been displaying signs of deflation, falling commodity prices, a sharp reduction in the velocity of money , and the erosion of confidence through the restriction of choice and investment that drives future economic growth as far back as 1997. Recognition of these trends, still largely dismissed as fantasy due to a steady diet of misinformation from various sources, will grow as the trends below accelerate. Global confidence backing 'weaker' currencies will erode quickly when major economic players, likely lead by those within the euro zone, confirm Britain's official deflationary trend. The United States, the economic rock that cannot falter and that's finally 'recovering' from the Great Recession, will likely join the deflation club after 2015. This outcome will likely surprise a historically misinformed Fed.


Consumer prices fell 0.1% in the year to April, with the UK officially and unexpectedly entering deflation.

Most people in the UK are a lot more used to inflation — when prices rise. Tuesday's figures mean that on average, prices are falling in the UK for the first time in at least 55 years.



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