With Europe slumping towards recession and Brazil doing the same, the US is fated to save the world from the horrors of deflation. Strangely, the US finds itself the only island of prosperity in a planet that is deflating. Ironically, money has been pouring into the US dollar, which in turn hurts our exports since this makes US merchandise more expensive. With the creation of additional trillions of dollars, the US has been unable to create its much desired 2% inflation rate. This, of course, is a testament to the deflationary forces. The European Central Bank, which would love to turn to QE, is stymied by Germany’s stubborn resistance to creating inflation.
Adding to yesterday's comparison of today versus the 1930s, I note that in the entertainment section of USA Today it starts with a treatise on horror and why horror is favored in film and TV. It seems that fear is the theme ... Log in or subscribe to continue reading.