23/9/2011 / Approximately two years ago in March 2009, this website was shut down, the markets had rallied, there was no point shorting in the face of unlimited cash.
Today, the tide seems to have changed, The FEDS, IMF, ECB and the various central banks have unable to bring about growth and consumer spending, by inflating the economy, they might as well try mail some cash to everyone in the form of coupons, it simply may not work, Japan deflationary era provided evidence to this scenario.
By not acknowledging the error and simply pushing it under the carpet, doesn’t mean it don’t exist. The write downs have not occurred fast enough and inflating with additional money supply, just creates another boom bust cycle, with the underlying far weaker than before.
In this week, we noticed the global fallout in commodities, stock markets and practically every asset class, Deflation is underway and its gaining momentum. If this reads right, the downside has a long way to go and this may just be the start of that trend.
The Bear is back.