Reuters columnist James Saft writes about the threat of deflation. He argues that “The Fed’s Herculean efforts have been effective in staving off deflation, if only temporarily, but far less good at fomenting actual sustainable growth.”
Saft also quotes leading deflationists Charles Minter and Martin Weiner’s June Comstock Funds newsletter:
“We think that the global forces behind deleveraging have more firepower than all of the world’s central banks and governments together, and that deflation is a much more likely outcome than a major inflation.”
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