Sunday, January 10, 2010

SOS MISH


Micheal Shedlock says:


Definition of Deflation is the reduction in money supply AND credit in the economy that cause all prices to go down generally


Conditions for deflation:



  1. treasury yields down

  2. commodities down

  3. stock market down

  4. home prices down

  5. consumer prices down

  6. GDP down

  7. credit market down

  8. USD dollar up

  9. Banks hoarding cash up

  10. saving rates up

  11. purchasing power of gold up

  12. bond price down

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