Monty Pelerin's World

Economics, Finance and Politics Through The Prism of Classical Liberalism

Inflation or Deflation – Considered Again

Inflation or Deflation – Considered Again

A reasoned view for high inflation is made on Zerohedge.

My opinion is that hyperdeflation (if it is defined as 5% or more) does not occur. The level of inflation could be hyper, however. I agree that “Monetisation is now the policy lever of first resort” and that governments will default on a rather massive scale.

Albert Edwards Predicts Deflation Followed By Double-Digit Inflation As “Governments Opt To Default, And Monetization Is Policy Lever of First Resort”

Tyler Durden's picture

Submitted by Tyler Durden on 03/16/2010 10:44 -0500

As if we needed any more confirmation that deflationary pressures continue to prevail and to swamp the broader economy, here is SocGen’s Albert Edwards with his most recent (and humorous: we had no clue that the “UK?s ONS statistical office has just decided to throw canned fizzy drinks out of the UK?s CPI basket and replace them with small bottles of mineral water”) menu prescriptions for the near- to mid-term future.

First an appetizer, here is a look at US consumer leverage trends. Yes, good point: what leverage?

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