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Deflationist Albert Edwards on U.S. CPI Inflation and Saving Rates

Originally published by The Street on August 3, 2017 Read the original article.

In the bottom half of the front page of deflation.com, you can read our summaries of leading deflationists.

One of those is Albert Edwards.

He’s sometimes mentioned in the financial press, and here are two recent examples, starting with thestreet.com (Sept. 4, 2017):

The Federal Reserve has been talking about shrinking its huge balance sheet, but renowned Societe Generale bearish economist Albert Edwards believes the U.S. is heading straight toward deflation.

“There is mounting evidence that underlying U.S. CPI inflation has already slid into outright deflation in exactly the same way that Japan did seven years after its credit bubble burst, ” Edwards wrote in recent research.

You can review the entire article by following the link below:

https://www.thestreet.com/story/14292536/1/august-jobs-miss-plays-into-bear-s-worries-about-u-s-deflation.html

Next, review this Aug. 3, 2017 CNBC excerpt:

Albert Edwards, a strategist at Societe Generale, pointed out in a note Aug. 3 that saving rates in the [United States and United Kingdom] have steeply fallen recently. In the U.S., the household savings ratio has fallen to 3.8 percent on a net basis, it’s lowest since the Great Recession, and to about 7 percent on a gross basis. In the UK, meanwhile, the savings ratio has slumped to 1.9 percent on a gross basis.

“This was last seen in 2007, just before the bursting debt bubble blew the global economy and financial system to smithereens,” Edwards said, referring to the 2008 financial crisis.

Here’s the link to access all of this article:

https://www.cnbc.com/2017/08/03/big-decline-in-savings-could-spark-economic-calamity-albert-edwards.html

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