Sunday, February 8, 2015

Deflate to Inflate "Check the pulse"

Since we are entering a time period in deflation, (To my understanding) it means there is less cash flow between individuals for transactions or lack there of credit established to make future transactions.

What this means is there is the beginnings of less credit available to the public for home loans car loans school loans and over all consumer credit

As the average people (Middle Class) have less and less due to increased taxes decreased incomes silent inflation ETC

As we currently check the beat of the systems it is said that the current status of the American economy is loosing ground we are loosing battles and losing influence. the American Gov. is loosing a lot as they are the bully in the school yard The rest of the wold has had enough -

*Factors China is waiting to release their gold holdings
*Russia is selling Treasury Bonds sided with china (They are both BRICS nations)
* The copper price has shaken hands with lows not seen since 2010 & 2008 - 2009
* The 10 year treasury note yields are at all time lows 1.66%
* GOV. to increase wages = increased tax revenue not take home salary
* Raise = to accommodate cost of living increase nothing more.
* tax increases on gasoline * diesel will influence costs of goods not gasoline.
* Baltic Dry index at all time lows for the month of January not seen since 1955. This = the trade and activity of dry good shipped & traded throughout the globe.
* Derivatives marked are heating up and the trade for dollars has also heated up this makes the Dollar look more as a safe haven however what is simply happening is the activity for dollars has increased and the demand has decreased as dollars are exchanged for hard assets while the entire globe wakes up to the fact they do not want to settle in dollars but a real asset of internist value as dollars no longer hold value due to the unlimited production/creation of currency.
Deflation




History of the Pound Sterling. (Inflation)
REC_02-06-15_Inflation1

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.