deerpointmacro.substack.com
Is Deflation On the Horizon?
Everyone seems to be talking about inflation. I will be discussing why deflation is the real problem that we will see. There are many deflationary signs all around us. I will be discussing the diminishing returns of debt, the velocity of money against total government debt as a % of GDP, credit impulse, demand destruction, building retail inventories, CPI vs. PPI, strong dollar, and finally, the manufacturing index slowing. These are crucial things to understand, as the inflation talk is drowning out the reality of what is taking place at the ground level. So I will do my best to explain why I am still in the deflationary camp and think it is what we should be concerned over.