The Deflation Black Hole

Black Hole Madness

The black hole is not deflation. The black hole is fighting it like Japan did, or as the US is doing now. For the $trillions spent fighting this mess, all we have to show for it is a lousy bump in GDP at an annualized rate of 2.5%. Now, Fisher suggests (and rightfully so), that's all there is.

Meanwhile all the consumer debt and housing debt is still intact. Moreover, another turn down in commercial real estate and residential real estate is coming. To top it off unemployment is 10.2% and rising, likely headed far North of 11%.

Given that the US is essentially following the same idiotic path as Japan, there is every reason to believe the problem manifests itself in a similar fashion.

Here is the full article.