Some telling signs of deflation despite the 5 year plus QE induced rally:
First, Gold has collapsed almost 40% from its all time highs of $1975 plus an ounce and doesn't appear to be recovering anytime soon: (Chart courtesy, Yahoo finance)
Second, the baltic dry index is down over 95% from its highs of near 12,000 in 2008, if there has been real growth and economic recovery why are shipping rates collapsing?(Courtesy stockcharts.com)
Thirdly, Abenomics has not succeeded in keeping deflation out of Japan: The Nikkei is still down over 70% from its all time highs (Chart courtesy, Yahoo finance)
Last but not the least the deflationary spiral in China is getting out of control: The Chinese market is down over 65% from its highs (Chart courtesy, Yahoo finance)
Bottom line: Deflation is alive and kicking and is going global in short order, beware those low volume stock market rallies
First, Gold has collapsed almost 40% from its all time highs of $1975 plus an ounce and doesn't appear to be recovering anytime soon: (Chart courtesy, Yahoo finance)
Second, the baltic dry index is down over 95% from its highs of near 12,000 in 2008, if there has been real growth and economic recovery why are shipping rates collapsing?(Courtesy stockcharts.com)
Thirdly, Abenomics has not succeeded in keeping deflation out of Japan: The Nikkei is still down over 70% from its all time highs (Chart courtesy, Yahoo finance)
Last but not the least the deflationary spiral in China is getting out of control: The Chinese market is down over 65% from its highs (Chart courtesy, Yahoo finance)
Bottom line: Deflation is alive and kicking and is going global in short order, beware those low volume stock market rallies
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