Rapid Inflation in Deflation Nation (Stories)

There seems to be rapid inflation in deflation stories in the media...we are in the sweet spot in these trades, but the pile on could soon turn dangerous. Will the reflation attempts take hold? I sure hope so, but keep in mind the current headlines were predicted by some people months ago, just as inflation was supposedly raging.

But that was all bullshit; this is my story and I am sticking with it. Frank Veneroso got the "fake out" right, and over the past few days the bond market rally he was anticipating.

But the deflation stories are everyone today, thanks to the Fed minutes.

All in the last 12 hours:

Fed vows to fight against deflation
Financial Times

Deflation fears send Dow below 8,000
Financial Times

Bernanke May Find Deflation `Back on the Table' as Fed Concern
Bloomberg

Prices Post Rare Fall; A New Test for the Fed
WSJ

Stocks Are Hurt by Latest Fear: Declining Prices
New York Times

Fed guards against deflation
Financial Times

2008’s Deflation Scare Echoes 2002
WSJ

DEFLATION WATCH: DAY 2
Capital Spectator
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Marry me, Stacy, on one condition. No deflation pillow talk.

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Apparently everyone is really confused.

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Go read Gregor’s piece...good stuff.

Question to the New Deflationists: do you really think it’s a coincidence that most bear markets and economic downturns since the 1930’s have had inflationary characteristics? Whether you got inflation immediately, like in 72-74, or soon thereafter, like in 1990-92 or 2000-02, why do you suppose that’s the case? My answer: people learn “lessons” from history. And so has the FED.

Without the 1930’s there would be no such person as Ben Bernanke. He wouldn’t exist. His ideas wouldn’t exist.

As everyone studies black and white photographs of the 1930’s with those images of exhausted people, dust storms, and despair–I continue to prepare for lots more inflation. gregor.us

The Twin Curves
Gregor.us

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