Category

Deflation

U.S. Economy

Deflation in 2015? These Four Charts Say Yes

Deflation in 2015 seems to be upon us. And while falling prices might seem like a good thing, deflation can wreak havoc on the economy.

In a deflationary period, prices will drop, corporate profits will dry up, wages will shrink, and all of this will reinforce the conditions of recessions.

These four charts show that the U.S. has a real deflation problem now...

U.S. Economy

One Sure Winner as We Fight Deflation

[Editor's Note: We are constantly surveying the investment world for ideas, hidden stories and unique perspectives to share with you. One of our favorite spots to look is The Aden Forecast, which has been written by Mary Anne and Pam Aden for decades. This recent article they crafted for you is testament to why we value their insight and analysis.]

For the past six months or so, we've talked a lot about the velocity of money and its effects. Increasingly, it's become the most important factor in understanding the markets and the uncharted waters we're currently navigating.

For years we've been delicately sailing between the Scylla and Charybdis of our day, between inflation and deflation. And the sharp drop in gold was yet another slide towards deflation's shores.

Meanwhile, the world's central bankers have been at the helm, doing all they can to keep deflationary pressures at bay and steer hard toward inflation.

But despite their unprecedented global efforts, including massive money stimulus and near zero interest rates, the rocky shores of deflation loom larger and larger. Here's why…