Thursday, January 30, 2014

World risks deflationary shock as BRICS puncture credit bubbles

World risks deflationary shock as BRICS puncture credit bubbles - Telegraph:

World risks deflationary shock as BRICS puncture credit bubbles
As matters stand, the next recession will push the Western economic system over the edge into deflation"Half the world economy is one accident away from a deflation trap.

The International Monetary Fund says the probability may now be as high as 20pc.
It is a remarkable state of affairs that the G2 monetary superpowers - the US and China - should both be tightening into such a 20pc risk, though no doubt they have concluded that asset bubbles are becoming an even bigger danger."

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