Well we can all see deflationary forces, default rates are skyrocketing across the board. Heck, even Ecuador defaulted on the global scene and we have about 30 other countries on various brinks. The US populace is default central with missed payments on all types of financing trending up.

On the other hand we have had coordinated rate cuts and $trillions of $ in stimulating going on with all countries. Where is this going because we can see consumers are not taking it out?

All this while unemployment is skyrocketing exacerbating deflationary default forces. Did you notice that factory in Chicago that shut down after it had it’s credit line pulled? How many other companies are in that position?

We may have to come up with something new for this monetary phenomenon. It’s a hybrid of hyper-deflation with targeted inflation.

It’s like the banks are keeping themselves alive by non-stop printing to off-set the losses of all the defaults coming back yet new borrowing on the consumer level is plummeting.