I don't know much about economics, but we seem to be in for some interesting times...
Prices are falling, and six months from now, things will cost less than what they do today- this is called deflation, and I don't know why, people are talking as if some kind of monster is stalking us.
"The price of white truffles has fallen 84pc. Fines wines have dropped 65pc. Lobsters are off 52pc. Deflation has reached the City. It has engulfed housing and now threatens to spread through the broader economy, lodging like a virus in the British and global monetary systems."
It offers a mouth-watering solution to defeat deflation: drop bundles of money from helicopters!!!
What has happened is that Retail Prices Index (RPI) measure of inflation fell to minus 0.4% last month. It has fallen from 0% in February and is the first negative reading since March 1960. So this calls for screaming headlines, "UK In Deflation For First Time In 50 Years"
If you are game for more bad news, read things like this:
"Faced with plunging orders, merchants across this recession-wracked country are starting to do something that many of them have never done: cut retail prices."Prices dipped everywhere, from restaurants and fashion retailers to pharmacies and supermarkets in March. Hoping to increase sales, Fernando Maestre reduced prices by a third on the video intercoms his company makes for homes and apartment buildings. But that has not helped, so, along with many other Spanish employers, he is continuing to fire workers..."
Spain, Luxembourg, Portugal, UK, Japan, US, Ireland, Germany...
The churn seems to be on...
If you are interested in this, you can look up MISH'S Global Economic Trend Analysis Quite an exceptional blog.
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