From Financial Sense
By Clif Droke
''A question that many are asking right now is what impact the Fed’s
latest monetary policy action will have on the projected deflationary
scenario for 2013-14. Specifically, market participants are wondering if
the Fed’s monetary policy action will prevent deflation from running
its course.
Next year is a critical one for the economy as it marks the start of the
final “hard down” phase of the 60-year/120-year economic cycle due to
bottom in late 2014. If the Fed and the other major central banks
(notably the ECB) take their foot off the monetary accelerator for even a
minute it will allow deflation to overspread the global economy,
potentially reversing the recovery of the last four years.''
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