EU Fears of Deflation

william the wie

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Assuming you have opened the Business section of just about any newspaper you have seen stories about the ECB fearing deflation. Simple question any evidence of this actually happening?
 

HenryBHough

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Been reading the same stuff.

I'll believe it when prices start to fall. I mean of stuff people buy regularly like food, gas, electricity, sneakers, gang colors, bling. Stuff like that.
 
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william the wie

william the wie

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It is bizarre. The ECB is now afraid that fracking will reduce energy costs worldwide and cause the demon deflation to destroy the EU.
 

JakeStarkey

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William, weren't you worrying about excessive inflation last year?
 
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william the wie

william the wie

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William, weren't you worrying about excessive inflation last year?
I would need to see the post you are referring to and what you consider excessive inflation to reply but generally speaking I consider price levels a factor to be considered. I did find it bizarre that QE seemed to be demonstrating a velocity >1.
 

oldfart

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Assuming you have opened the Business section of just about any newspaper you have seen stories about the ECB fearing deflation. Simple question any evidence of this actually happening?
Surprise, surprise! Austerity leads to deflation. Who wudda thunk?
 

JakeStarkey

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William, weren't you worrying about excessive inflation last year?
I would need to see the post you are referring to and what you consider excessive inflation to reply but generally speaking I consider price levels a factor to be considered. I did find it bizarre that QE seemed to be demonstrating a velocity >1.
So the Board can consider that a "yes".

Why are you worrying about deflation this year when you have been worrying about inflation.

Can you worry about both at the same time as a real threat in the context now, or are you worrying just to worry?
 

oldfart

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The Rabbi

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william the wie

william the wie

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William, weren't you worrying about excessive inflation last year?
I would need to see the post you are referring to and what you consider excessive inflation to reply but generally speaking I consider price levels a factor to be considered. I did find it bizarre that QE seemed to be demonstrating a velocity >1.
So the Board can consider that a "yes".

Why are you worrying about deflation this year when you have been worrying about inflation.

Can you worry about both at the same time as a real threat in the context now, or are you worrying just to worry?
I'm not worried in either case. I am trying to figure out what risk reduction strategies are the most cost effective to protect my capital but I really don't care. I generally just try to find actionable market intelligence and that is like 75% of my motivation for posting.
 
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william the wie

william the wie

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Surprise, surprise! Austerity leads to deflation. Who wudda thunk?
There has been no austerity, Nimrod.
None in Greece, Italy, Spain? Where do you think the ECB is?
I have my questions about Spain still being in austerity but I think France is becoming the flipside of austerity and does this too contribute to potential deflation and by what mechanism would you think it is operating if that is the case?
 
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william the wie

william the wie

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Assuming you have opened the Business section of just about any newspaper you have seen stories about the ECB fearing deflation. Simple question any evidence of this actually happening?
Yes. Eurozone inflation is now ~1% and has been on a downward trajectory for some time.
What spillover effects into North America seem likely to you?
 

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