From The Gowdie Letter (Australia) –
What a difference a week makes.
Volatility has returned to markets.
Last week’s update was an economic whistle-stop through Australia, the US and Europe.
The deflationary signs — for those who care to look — are lurking just below the surface in both the developed and developing worlds.
You know the story…central banks have made a concerted (I think that’s what you’d call it after eight years) and coordinated effort to reflate markets in the hope of sparking inflation and prying open our wallets and purses. In a world with way too much supply, they are desperate to stimulate demand.
So far, ‘all the king’s horses and all the king’s men have failed to put our past consumption trend together again’.
Mainstream commentators are now voicing concerns we’ve been expressing for quite some time.
The UK Telegraph on 9 September 2016:
Ambrose Evans-Pritchard states what has long been obvious to those of us who question the official spin:
‘Large parts of the eurozone are slipping deeper into a deflationary trap despite negative interest rates and one trillion euros of quantitative easing by the European Central Bank, leaving the currency bloc with no safety buffer when the next global recession hits.’