Sentences with phrase «into deflationary»

As a result, the economy suffered a large - scale credit crunch and ultimately fell into a deflationary trap.

A government can also spend more or cut taxes if a country has already dipped into a deflationary spiral.

One of the most worrisome areas is Europe, which has long struggled with chronic low growth and technically crossed into deflationary territory with a negative inflation reading for December.

It is important to realize that QE was an emergency measure used to stimulate the economy and prevent it from tumbling into a deflationary spiral.

Not exact matches

The combination of very high levels of debt and excess manufacturing capacity can lock an economy into a self - reinforcing deflationary process in which growth stagnates and debt rises faster than debt servicing capacity.

But economists worry that the commodity mess reflects a weakening global economy, lowering the value of trade worldwide and perhaps even pushing some countries into the same kind of deflationary spiral that has hampered the Japanese economy for decades.

In addition to near zero interest rates, central banks created excessive amounts of money by issuing trillions of dollars of bonds, e.g. QE1, QE2, QE3, QE4, etc. pushing unprecedented amounts of newly created money into global markets to contain the growing deflationary threat; and, while it failed to contain deflation, the excessive liquidity is now circulating in markets with no place to go, akin to moribund monetary edema.

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.

Preston: [00:05:21] They're trying to pump as much cash into the system as possible because there are these enormous deflationary forces that have been at play for 35 years here in the U.S. at least.

(From «It Never Rains in California,» 6/15)-- Stan Druckenmiller: «The Fed keeps talking about deflation, but there is nothing more deflationary than creating a phony asset bubble, having a bunch of investors plow into it and having it pop....

Not only will any renewed yen weakness motivate foreigners back into the Nikkei, but also higher compensation and a less deflationary outlook could eventually move additional bonus cash (thanks in part to NISA) into Japanese stock.

That trend towards higher inflation expectations continued into U.S. inflation expectations, indicating that the ECB QE announcement, and coincident with tentative signs of stabilization of oil prices, may mark the low point of deflationary fears driving global interest rates to new lows.

The mechanisms of this international capitalist recession, the latest of which, to date, some would like to see as the first crisis of world capitalism, are well known: contraction in production and trade; deflationary trends; massive growth in the volume of loans accumulated by international banks on countries or on the major industrial and banking groups, loans which become transformed into irrecoverable debts; brutal capital withdrawals from countries by the major financial operators, which live from the revenue from parasitical investments in bonds, shares and other derivatives.

There's more talk now about an impending deflationary period than we've heard in several years and the thing about this churn is that even if we don't truly experience textbook extensive deflation, the sentiment alone could easily drive investors in droves into assets that perform well during periods of deflation.

Meanwhile, in a deflationary world, hard assets are worth less and less each year, causing consumers to question purchases since they'll be discounted further into the future and this cyclical black hole keeps broadening.

Gold prices have come well off their highs, Treasury yields keep dropping (although the yield curve isn't flat enough to signal a «definitive» deflationary environment out into the future), and even Federal Reserve officials are hinting at fears of deflation.

It's clear that a deflationary threat to gold has subsided and the world is headed back into an inflationary period.

With this in mind, even if you're unsure of which scenario we're looking at into the future, some of these ETFs that would be expected to perform strongly in a deflationary environment are worth a look:

All we need to do to switch bitcoin from a deflationary into an inflationary currency or to move in the other direction and just split Satoshis further into even smaller parts is change the source code.