America Wake Up: Deflation Is Here, We’re Just Like Japan, Except We’re Much Worse
We have the a collapsing empire to contend with too
Jul. 29, 2010
Today we got the news that the Fed’s James Bullard thinks the U.S. is heading for a deflationary period. He’s not the first to suggest this. Richard Koo has been on it for months (if not years) warning that the U.S. could turn into Japan, with a lost decade, as our free money spigot produces nothing but stingy corporate chiefs cutting costs and paying down debt.
Combining this with Niall Ferguson’s analysis that the U.S. is an empire on the wane, at the risk of collapsing under the weight of its own interest payments, and we have a potentially devastating scenario.