'Central banks’ seriously misguided attempts to defeat routine consumer price deflation is what fuels the destructive asset bubbles that eventually collapse.'
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'Central banks’ seriously misguided attempts to defeat routine consumer price deflation is what fuels the destructive asset bubbles that eventually collapse.'

Posted by ProjectC 
'..America's pension crisis is a big part of the $400 trillion pension time bomb threatening the global economy and it is deflationary and bond friendly.'

- Leo Kolivakis, America's Corporate Pension Disaster? August 4, 2017


'In order for the Maestro to be right, US inflation expectations have to pick up in a significant way. This won't happen and to understand why, read Gary Shilling's recent comment on three things central bankers don't get about wages.'

- Leo Kolivakis, Is the Maestro Wrong on Bonds? August 2, 2017


'Very recent data confirms slumping household saving ratios in both the US and UK. This was last seen in 2007, just before the bursting debt bubble blew the global economy and financial system to smithereens. The Fed and BoE should surely hang their heads in shame having presided over yet another impending disaster. Why will politicians and the people tolerate this incompetence? Indeed they won’t.'

- Albert (Shades of 2008: UK and US Savings Rate Plunges, Debt Comes Full Circle, August 3, 2017)


'It’s no mystery why central bankers are mystified: Collectively, they are economically illiterate fools engaged in Keynesian and Monetarist group think.

..

On deck is another round of destructive asset price deflation, brought about by Central banks who cannot see the obvious.'

- Mike “Mish” Shedlock, Central Banks Puzzled as Global Inflation Hits Lowest Level Since 2009: Solving the Puzzle, August 3, 2017


'..history and logic both show that concerns over consumer price deflation are seriously misplaced.

Worse yet, in their attempts to fight routine consumer price deflation, central bankers create very destructive asset bubbles that eventually collapse, setting off what they should fear – asset bubble deflations following a buildup of bank credit on inflated assets.'

- Mike “Mish” Shedlock, Historical Perspective on CPI Deflations: How Damaging are They? March 30, 2015


'BIS Deflation Study

The BIS did a historical study and found routine deflation was not any problem at all.

“Deflation may actually boost output. Lower prices increase real incomes and wealth. And they may also make export goods more competitive,” stated the study.

It’s asset bubble deflation that is damaging. When asset bubbles burst, debt deflation results.

Central banks’ seriously misguided attempts to defeat routine consumer price deflation is what fuels the destructive asset bubbles that eventually collapse.'

- Mike “Mish” Shedlock, How Twisted Minds Function, August 2, 2017


Context

'..If you can’t see this next crisis coming, you’re not paying the right kind of attention .. Financial politicians..'

'..the Next 30 Years: “Everything is Deflationary”..'

'..a 30-year bear market..'