More likely is that
deflation continues, and the Fed reinforces it with more QE.
They are losers if
deflation continues.
But if
deflation continues, deflating prices can mean that trouble lies ahead.
Not exact matches
Branded drug price
deflation and fewer expected new drug launches
continue to put pressure on industry profits, and AmerisourceBergen has been working to counter those effects.
Food stamp cuts, food price
deflation and lower prices
continued to plague the chains, and worries that Dollar General's excess inventory would squeeze margins grew louder.
If oil prices
continue to fall, it will slip into
deflation which would be bad news for stocks.
We begin with an analysis of the
continuing bailout of insurance giant AIG and Monday's stock market selloff; price and debt
deflation; the two sectors of the economy; two definitions of «free markets»; the classical economists; revolution from the right and the former Soviet states; the threat of war; IMF / World Bank resurgence; the dollar versus the euro; analogies to Rome, neo-feudalism.
For commodities, we have now updated our guidance to 5 % to 6 %
deflation; this is mainly due to the
continued favorability in beef prices.
The currency is being let off its leash right at the moment when market sentiment on China is pessimistic because of a
continuing economic slowdown, an increase in private capital outflows, and entrenched producer price
deflation.
Additionally, «wages are already accelerating at a pace that would end
deflation in 2016,» according to Robert Feldman, Morgan Stanley's Japan economist, adding, «Once
deflation ends, the Bank of Japan can not
continue the quantitative easing that currently monetizes the deficits.»
Either
deflation's growing momentum will pull today's faltering economies into the ever - growing maw of a deflationary collapse or the
continued printing of money to stave off such a collapse will end with the complete debasement of paper currencies in a hyperinflationary blowoff.
The Euro Zone
continues to struggle and flirts with outright
deflation — another harbinger of tough times for commodity demand.
Short German Bunds with leverage USD will
continue to be strong ECB QE will not work
Deflation is a problem, Oil at $ 30 will bring unintended consequences Oil will not rebound quality — we will probably stay in a bear market Gold could rise much in 2015 as of April 2015
Workers and consumers eventually feel the weight of
deflation as they lose jobs, earn less and spend less, expecting poor economic conditions to
continue.
Jeffrey Gundlach Macro Views Short German Bunds with leverage USD will
continue to be strong ECB QE will not work
Deflation is a problem, Oil at $ 30 will bring unintended...
Still, data for April
continue to suggest the risk of sustained price declines known as
deflation remains remote, since the drops are still mostly centered in energy and energy - related products.
Nevertheless, the apparent success of the ECB's policy in overcoming the threat of
deflation increased speculation about a potential tightening of monetary policy, possibly even before the cessation of the central bank's bond purchases — scheduled to
continue for at least the rest of the year — and in the wake of the ECB meeting pushed market estimates of the odds of a rise in official interest rates before the end of 2017 to more than 50 %.
Japan
continues to experience
deflation, although recently some temporary factors have slowed the decline in consumer prices.
And if most governments in the world have been financing their budgets with debt, the minute the debt
deflation hit, that's essentially the bond market saying, «hold on now it's going to cost you a lot more if you want to
continue financing your budget».
In addition, the Japanese economy
continues in a cyclical upswing, with an easing in the rate of price
deflation and improvements in business confidence.
Without clearing our debt, theeconomy will
continue to languish in debt
deflation and polarization between creditors and debtors.
If we're right, however, aggregate price indices like the CPI and PPI will
continue to drop in economic recovery and verify the arrival of chronic
deflation.
Barden said that input costs are rising on everything from commodities to labour to energy, and the six years of retail price
deflation and rising labour costs the industries had undergone «
continues to cut margins, placing the sector under increasing pressure».
Analysts believe Coles» profit margins could come under pressure or stall this year if it
continues to invest in reducing prices ahead of cost reductions and as
deflation makes it harder for retailers to fractionalise costs.
«We are
continuing to invest in price all the time at the moment and you can see the
deflation numbers that we reported,» he told reporters.
«While Coles
continues to lift its investment in price, we believe Woolworths is becoming increasingly rational, dropping the level of promotional activity by 9 per cent in the third quarter and stabilising
deflation,» Mr Gilbert said.
Deflation was expected to
continue in food and grocery, adding to operating deleverage.
Continuing asset
deflation, and declining but still positive economic growth (as the government measures it) leads the Fed to
continue to loosen, or stand pat in the face of rising consumer price inflation.
Instead of
continuing on from last year where things seemed to be in their proper order, we have started with recurrent volatility, political incompetence, an increase in terrorist incidents around the world, currency instability in both the developed and developing markets, and more than a faint scent of
deflation creeping into the nostrils and minds of central bankers.
When the economy falls into the Zero Bound area, investors become optimistic about the possibility that prices will rise because market participants have come to expect
continued deflation.
Yes, so far there has been
deflation, backed by the US government, but why should the US government
continue to pay particularly when the costs of Social Security and Medicare become steep?
There is no «risk» of inflation, because the
continued existence of inflation (or
deflation) is a near certainty.
But it's not clear where Smurfit stands in this regard — there are certainly fresh threats to global growth, and debt overhang will restrain the developed markets for years to come — on the other hand, Smurfit's now a dominant player, emerging markets
continue to perform well, and Western central banks
continue to pump out a tsunami of liquidity to combat debt
deflation.
My view is that we will go through
continued deflation until the pain is too hard, and then we will experience inflation in a big way.
As I've written, I'm certainly not that hopeful for growth prospects in Europe, or most of the developed world — but a decision to avoid the region altogether (on
deflation fears) is not a call I'm prepared to make, I think there will
continue to be plenty of interesting discounted asset opportunities to focus on.
The bond rally and forex drop in value have been driven by fears of
deflation and speculation that the European Central Bank will need to
continue, if not increase, the purchasing of debt to stimulate the region's economy.
When overstimulated, you may
continue to pursue adventures, despite the consequences of being exhausted or depleted; when under - stimulated, you may feel a sense of boredom or restlessness that comes out as irritability or
deflation.
The figure is well below the Federal Reserve's annual target of 2 percent and could raise
deflation fears as the central bank
continues to scale back a key stimulus program.
Indeed, some analysts have even been talking about the risks of entering a period of Japanese - style
deflation in which the expectation for
continuing price drops keeps people from spending.