Friday, July 17, 2009

Negative Inflation

The inflation rate is at its lowest level since 1955 apparently. We're not seeing deflation because this is mainly stagnation combined with a lower price for oil as opposed to falling prices across the economy. But it signals the continued weakness in the world economy, testimony to the absence of a real economy to "stimulate" as described by Paul Craig Roberts at CounterPunch.

Obama, harper, and all the other status-quo politicians are moronically trying to use deficit spending to restore the economy to where it was right before last summer's meltdown. Somehow, they imagine, cleaning up the financial sector mess will allow the world to get back on the path of falling incomes, debt-driven consumerism and ponzi-schemes that is the basis for solid growth. (The sound fundamentals if you please.)


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