[quote=CA renter][quote=paramount]Are there deflationary signals right now? In the bond market maybe?[/quote]
There have been deflationary signals for many years. Why do you think the Fed has been intervening so much in our economy? ZIRP is almost always a sign of deflation, IMO.[/quote]
Yup we’re doing the same thing as Japan’s been doing for the past 20 years. Fighting deflation at all costs. In doing so, we are slowing down the growth of our economy as too many productive assets have to be allocated to debt repayment. If you let the too big to fail, actually fail you solve many of the problems in the economy including income inequality. Now people sitting on the other side of the balance sheet looking to collect rent on the productive segment of the population hate this idea, but it would get our economy growing again as we’d have more money to invest in productive things.
