Tuesday, January 7, 2014

NYT: "Another Worryingly Low Inflation Rate for the Euro Zone"

The deflation "mystery".

"The European Central Bank seeks to keep price growth steady at about 2 percent. The situation now, in which the rate of inflation is falling, is known as disinflation. If the situation continues in this direction, Europe could face outright deflation..."
The US and EU will probably respond to deflation like Japan, with huge devaluation schemes that do nothing yet trigger unpredictable stock market rallies of 50-100%.

1 comment:

theyenguy said...

Creditism, corporatism and globalism were the dynamos of liberalism’s economic activity, whose purpose and focus was for investment return.

Economic growth metrics, such as job creation, ADP Employment, increasing GDP, are hokum, that is they are exogenous to liberalism’s purpose of providing investment return for the investor based upon one’s risk profile. Monetary transmission under liberalism was quite effective in a five investment areas:

1) Risk Investing, FXR, CHII ,PBS, RZV, PSCI, FPX, PJP, XTN, TAN, ZIV

2) Global Spending Investing, PKB, BJK, IGV, PSCC, SOCL, PPA, CSD, IBB, CARZ, PSCD

3) Global Growth Investing, SOXX, TAN, PICK, IPN, FLM, SLX, WOOD, XHB, RZG, MHK

4) Consumer Spending, Investing, PNQI, RXI, IYC, FDN, PBJ, PSCC, IHF, XRT, KXI, PSCD

5) Eurozone Countries, EWI, EWG, EFNL, EWN, EDEN, EIRL, GREK, PGAL, EWO, EWP

I do not see any devaluation scheme at all. Under authoritarianism, in response to a deflationary bust, the beast regime, creates seigniorage, and mints money through the word, will and way of regional nannycrats, as they coin diktat money through the mandates of statist public private partnerships, and in their activity of administering the factors of production, banking, fiscal spending, commerce and trade, all for regional security, stability, and security, overseeing the debt serf. Such will be the mechanism of authoritarianism's scheme of totalitarian collectivism.

Banks everywhere will be integrated into the government and be known as government banks, or govbanks for short; thus the Excess Reserves, will be captured by the beast regime, and not being released will not pose an inflationary threat. The Regional Banks, KRE, and the Too Big To Fail Banks, along with greatly downsized Asset Managers, BLK, WDR, EV, STT,WETF, AMG, IVZ, CNS, AMP, PFG, LM, FNGN, BEN, VOYA, DNB, MORN, BR, and BX, will all be made whole and sterilized by integration into the US Federal Reserve.

Regionalism is the singular dynamo of economic activity under authoritarianism. Monetary transmission will become quite effective for a number of people, as bible prophecy reveals “they worshiped and followed after the beast, saying who can make war against it”, Revelation 13:3-4.

The good news in all of this is that Jesus Christ is coming to eliminate the Double Entry Bookkeeping System, with its ledger of debits and credits, which created the debtor and the creditor, by ruling from Jerusalem in His Millennial Kingdom, where there will be economic prosperity, with overflowing abundance, as Dr. J. Dwight Pentecost writes Isaiah 4:1, 35:1-2, 35:7, 30:23-25, 62:8-9, 65:21-23, Jeremiah 31:5-12, Ezekiel 34:26, 36:29-30, Joel 2:21-27, Amos 9:13-14, Micah 4:1-4, Zechariah 8:11-12, 9:16-17)