The European markets are also down, the DAX is down 2.0%. See here.
The European markets are also down, the DAX is down 2.0%. See here.
SPX: Very Long-term trend - The very-long-term cycles are down and, if they make their lows when expected, there will be another steep and prolonged decline into 2014.
SPX: Intermediate trend - After last week, it is likely that the downtrend continues. It has a tentative projection to 1065.
People throw the words "deflation" and "inflation" around without a clear idea of what they mean.
The author is confusing the lack of velocity of money with deflation. He's also engaging in wishful thinking wanting his (demonstably wrong) predictions to come true.
The dollar "rallies" he refers to were only "rallies" as measured against other currencies. The dollar going up against other currencies has little to do with the actual buying power of the dollar. How many euros or yen a dollar buys often has no relation to how many widgets, barrels of oil, gallons of milk, ounces of gold or pairs of shoes that same dollar will buy.
To put it another way, a dollar may buy .85 euros today and may still buy .85 euros 4 years from now, yet a loaf of bread 5 years from now may cost 10 dollars or 8.5 euros. Measuring the value of the dollar against other currencies may be good for currency traders, but it's a lousy way to determine the actual VALUE of a dollar.
Do those telling us that deflation is here want us to suspend reality when we go shopping?
It must have arrived since I last checked the price of the benchmark roll of toilet paper (one roll, Scott 1000 sheet single ply, $1.19).
ML/NJ