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the BBC a business news
pollen euro zone inflation rate fuels deflation concerns
this the the BBC pointing out that the
euro zone inflation fell seven-tenths
up 1 percent in January and
I it was at eight tenths of a percent December
so it's so inflation is only one tenth of one percent for January
and the EU is trying to keep inflation a2 percent
when inflation goes negative that's called deflation
we have another word for deflation at least once protracted one understands
over period time
that word is depression BBC does not use that word
but what they do say is concerns about possible deflation where the price of
goods and assets are locked in long-term decline
hitting corporate profits wage growth intending consumers to delay purchases
novel further price falls
have grown in recent months see deflation is this
devolution Ari rather than evolutionary spiral
through though the economy just spins down outta control it's what happened in
1929 1930 1931 1932
and it's what happened for
for a brief period of time in 2000 8 and Europe is very concerned there might be
about to happen there
I thought that there was a dumb
it an absolutely brilliant column that you really should read today
by Paul Krugman on the New York Times and what he is but pointing out you know
the the market has been down
the last few days and no
last BMO stir this week it back maybe I think all this week
a last couple weeks the market's been down quite a bit
and so the Qatar market you know things
the all FXX i think is one of them
whatever whatever they are the the other the
bet against the market funds are up the hedge funds
but there's
they're hemorrhaging right now in Argentina the Argentina
Argentine peso is like under assault
and a
it Paul Krugman does not actually point out
that Paul singer's hedge fund one these big hedge funds in New York
one a judgment they've they bought up a bunch are
you know in Argentina defaulted on their on their bond obligations in 2000-2001
those bonds were still out there Argentina just that we're not gonna pay
more so the value
on the bonds became like a penny on the dollar and so
bobbitt singers big hedge fund and and a bunch of others
bought up these bonds for penny on the dollar and then he
took it all the way to the courts and actually got a judgment that Argentina
had to pay a whole bunch of money
none of that's what's driving this or not but
that certainly not helping Argentina but the point the Paul Krugman makes
is that we had this period is stability from the end of world war two and told
basically the
blade seventies early eighties the and it is last couple years the carter
administration to get in the reagan administration
where are one country's problems didn't
in fact other countries and there was a reason for them
you know how with regard to trade we used to have tariffs we used to have
basically a semi-permeable membrane around the United States
tariffs and trade policies and we get away with that the nineties
in that was not good we also used to have something like that for finance
and we started doing away with that the late seventies nearly eighty
its thats the problem
this is the Thom Hartmann programs are basically saying that ever since
the you know ever since nineteen eighty more Los we've
we've been at risk worldwide at these boom-and-bust cycle the habit I just