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Big Time ‘DEFLATION’ coming in 2015! Why?

December 4, 2014

The trend from dis-inflation to deflation is starting and will accelerate in 2015. Since the USA is now dropping their QE counterfeiting policy and slowing their economy (especially exports) this means that a trend reversal is developing as I write. We witness this trend reversal at our various ports of call today. The Long Beach port and the Los Angeles port (California) have a waiting line of ships wanting to unload their cargo of ‘stuff’ for our retail establishments (as I write). The stong dollar (relatively speaking) is allowing our retailers to import a greater quantity of goods from our foreign suppliers at lower prices. This is likely to continue into 2015. This means more ‘deflation’ for our markets going forward!

The Russian Rouble/Dollar ratio means a serious recession for Russia in 2015! The consequences of this change will likely affect America later in 2015!

Simultaneously with this trend towards more stuff and lower prices we witness a growing number of emerging nations starting their own QE counterfeiting polices. These policies create a type of currency war as each country desires to protect their own countries economy from stagnation by lowering their currencies value relative to our dollar. At the moment, the USA is benefiting from these price/currency wars as the U.S. Dollar is used for pricing some 61% of all goods within our global markets. America benefits (at least temporarily) from these global currency wars as we still enjoy the World’s Reserve Currency Status for our dollar. This may change later, but as of today America can import more goods at lower prices than any other nation.

The problem with accelerating deflation is that this trend will stop house prices from increasing in value (going forward), it will make our huge levels of debt more difficult to repay, it will likely continue to increase our trade deficits with our counterparties, and it will expose all our national debt and liabilities as unpayable. Deflation is good for those with little debt and those who benefit from lower prices (many types of consumer goods will drop in price). We now witness a huge drop in our oil/gas prices as crude oil has dropped from over $100/barrel to $67/barrel (in weeks). Deflation can occur suddenly and precipitously in todays speed of light trading markets.

Crude oil and gas prices are falling and this is deflationary for the overall markets!

Other markets which are now in a dis-inflationary mode are the countries of China, Russia, Germany, Sweden, most of the Eurozone area, much of Africa, and much of Latin America. Temporarily, this trend is beneficial for American consumers. In the longer run, however, deflation will create a total collapse of all our debt markets, all our inflated stock markets, and all of our inflated derivative markets. The Keynesian economic model is built upon a philosophy of continuing inflation over time. Inflation creates increasing values and allows debt to be carried at higher levels. This model can not survive given the coming dis-inflationary trend which is leading to a global deflationary trend.

None of the above debt can be repaid! This awareness will emerge in 2015 as deflation occurs! Go to: http://www.usdebtclock.org for more evidence!

Currently, the Russian ruble is collapsing against the American dollar and this means that Russia will be in a recession within weeks/months. The Russian ruble has no global Reserve Status and this means that Russia will experience a collapse in consumer demand going forward (as domestic prices increase). Domestic prices in Russia will increase substantially and this means a serious recession is in the works. America has been insulated from many price and recessionary issues (comparatively) as we enjoy the Global Reserve Status for our dollar. Since most goods/commodities are priced in dollars (globally), we can create counterfeit dollar units to maintain our growing consumer consumption. This could change radically, however, later in 2015-16.

QE counterfeiting is likely OVER for the USA. This means Deflation, a stock market collapse, and the beginning of the end of Keynesian economic policies!

The BRICS nations and many other nations are now recognizing that the U.S. Dollar Reserve Status has allowed America to consume (insatiably) without giving comparable value in return. This means that America will be vulnerable to serious counter actions from many of our trading partners going forward. At some point we can expect that our dollar will be removed from having this favorable reserve status. This would mean that American consumers must live within their means for the first time since the end of WWII. We could witness the beginnings of a new Bretton Woods Monetary Regime in the very near future. Global survival depends on economics and our economic house is in a serious state of meltdown.

The strong dollar (relatively speaking) is crushing the gold price at present. This, however, could change in 2015 as deflation creates ‘fear’ in our markets. Also, gold price manipulation may be difficult to maintain when the existing supply is in stong hands. Russia, China, India are purchasing physical gold in huge quantitiess!

2015 is likely the year of an economic trend reversal for the entire world. We have operated our world on the Keynesian economic model of inflation (called money printing) since the end of WWII. After the closing of the gold window this model allowed unlimited creation of debt and credit for the expansion of our trading markets. Today, this model has created a DEBT situation, globally, which has now reached an unsustainable THRESHOLD. None of this global debt can be repaid. The best site for understanding our condition is: http://www.usdebtclock.org. This website shows the past trend and exposes our impossible condition (mathematically). The game of Capitalism is soon over for our world! How is the time to prepare for rapid change and eventually a NEW ECONOMIC MODEL for the entire planet! Kingdom Economics is the ONLY model which will work going forward IMO. Enjoy the coming ride! I am: https://kingdomecon.wordpress.com.

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