Monday, March 10, 2014

Charles Nenner Research: Danger Of Deflation Is Real

Today’s research focuses on certain long-term cycles and their relation to ‘economics.’

We still feel that equity markets are flirting with deflation, and that commodities are continuing in a bear market. Supply has been growing faster than demand—and this is only partly the fault of the Federal Reserve.
Interest rates are close to zero, leading to fear of deflation. Therefore, under classic economic theory, prices either have to decline or output has to contract or both. Most economists today, however, believe that supply will create demand.  (more)

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