Deflation is everywhere. So what? It’s another crack in the wall.

Concerns about deflation are becoming widespread.  Deflation is unwelcome because it makes loans more difficult to pay off and dampens economic vitality by encouraging hoarding of cash (some banks offer negative interest for deposits). There were concerns about the spectre of inflation back in 2008/9 but they were held at bay until the recent drop …
Continue reading Deflation is everywhere. So what? It’s another crack in the wall.

Asset prices down, money chasing security. What’s the problem?

While there has been enthusiasm for a recovering global economy, optimism is being dampened by market movements. There are some fundamental concerns about projected consumption levels and production costs. There are a number of geopolitical risks festering around the world: The strife in Hong Kong is being calmed by force.  That will be re-assuring now, …
Continue reading Asset prices down, money chasing security. What’s the problem?