DoChenRollingBearing
Yellow Jacket
...
Deflation followed by inflation is a theme I have read and heard about for a long time. But, now seems like we may be setting up a deflationary environment (using popular definition of "lower prices")...
Almost all bulk commodities (crude oil, gasoline, iron ore, steel (rebar), copper, corn, cotton, soybeans, etc., etc.) are down, esp. in 2014. 10-Year Treasury rates are down. The Baltic Dry Index is down.
So, there is a case for saying DEFLATION is or soon will be happening (gasoline prices at the pump ARE lower).
But, deflations usually don't last long...
"Deflation First, Then Inflation?"
http://goo.gl/NRArHa
Deflation followed by inflation is a theme I have read and heard about for a long time. But, now seems like we may be setting up a deflationary environment (using popular definition of "lower prices")...
Almost all bulk commodities (crude oil, gasoline, iron ore, steel (rebar), copper, corn, cotton, soybeans, etc., etc.) are down, esp. in 2014. 10-Year Treasury rates are down. The Baltic Dry Index is down.
So, there is a case for saying DEFLATION is or soon will be happening (gasoline prices at the pump ARE lower).
But, deflations usually don't last long...
"Deflation First, Then Inflation?"
http://goo.gl/NRArHa