Deflation Watch

Originally published by Bloomberg on July 23, 2014 Read the original article.

Despite record-low interest rates, European economies remain sluggish. Will the European Central Bank try bond purchases to stimulate economic growth? Not if Germany has its way, according to a July 23, Bloomberg article titled, “Draghi Faces German Hard Line on Avoiding Deflation.” Here’s an excerpt: Germany’s intransigence is … in play as Draghi, the Italian [...]

Read More

Originally published by Wall Street Journal on July 9, 2014 Read the original article.

Guess which country has the highest inflation rate in all of Europe? The answer is not Germany. The Continent’s economic stalwart has an inflation rate of less than 1%. Even France’s inflation rate is higher than Germany’s though still less than 1%. Great Britain? No. But you’re getting warmer. The inflation rate in the U.K. [...]

Read More

Originally published by Reuters on June 10, 2014 Read the original article.

Greece’s debt crisis grabbed the world’s attention some five years ago. In November 2009, Greek Prime Minister George Papandreou described his nation’s economy as being in “intensive care.” Since then, despite reforms and rescue packages, the nation’s economy remains unhealthy. Deflation has taken over. Read this June 10, Reuters article titled, “Greek deflation accelerates in [...]

Read More

Originally published by PanARMENIAN.net on June 5, 2014 Read the original article.

You expect to earn interest on your bank deposits. Imagine if your bank turned the tables and started charging you for accepting your deposits. Banks in the European Union do not have to imagine that scenario. It’s a reality.  In a first for a major central bank, the ECB has imposed a negative interest rate [...]

Read More

EWI’s Chris Wallace recorded an interview with Brian Whitmer, editor of Elliott Wave International’s European Financial Forecast, about deflation and what he’s seeing in the realm of the global economic and financial system. Enjoy the 12-minute interview below.

Read More

Originally published by Spiegel Online on April 23 Read the original article.

ECB President Mario Draghi appears to prefer the phrase “low inflation” to the word “deflation.” But if psychoanalyst Sigmund Freud were around today, he might conclude that deflation is on Draghi’s mind. Read this excerpt from an April 23, Spiegel Online article: One of European Central Bank President Mario Draghi’s most important duties is watching [...]

Read More