Deflation: Back with a Vengence – Dr. O – … Except for a couple of monetary blips here and there it’s been deflation all along. Or, should I say the underlying theme of the 2000s has been deflation, offset to some degree for part of the time by governmental-induced inflationary episodes. … It’s now clear to me that regardless of 0% interest rates and stimulus spending the US is already on the same deflationary collapse trajectory that Japan has been on since 1989. Thus, the US dollar and cash will be king for a while, again, just like during the 2007-2009 collapse, and, I would anticipate falling commodity prices, and falling stock prices. … – Seeking Alpha
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The Fed’s Anti-Inflation Exit Strategy Will Fail – By ALLAN H. MELTZER – Sooner or later the pressure to lend out excess bank reserves will be unstoppable. – WSJ Opinion
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Does Sound Money Feed Credit Excesses? – By RANDALL W. FORSYTH – Stable money may induce lenders and borrowers to go overboard. – Barron’s