The American Empire in a Changing World


Tuesday, October 16, 2012

''The Good, Bad and Ugly of Deflation''

From Market Oracle
By John Mauldin

''Inflation in the U.S. has historically been a wartime phenomenon, including not only shooting wars but also the Cold War and the War on Poverty. That's when the federal government vastly overspends its income on top of a robust private economy—obviously not the case today when government stimulus isn't even offsetting private sector weakness. Deflation reigns in peacetime, and I think it is again, with the end of the Iraq engagement and as the unwinding of Afghanistan expenditures further reduce military spending.''

read more 

No comments:

Post a Comment