"Yes, I am aware of that because they [deflationists] focus say on one sector of the economy, which is the housing market, or they focus on the debt deflation that we have at the present time to some extent because the household sector has been reducing its debt on credit cards, and we have also some de-leveraging in other sectors of the economy. But that is offset by the government fiscal deficit and at the same time also by monetization on a massive scale. So I do not really see any deflation in the system at the present time." ~ Marc Faber
Tuesday, January 10, 2012
Quote Of The Day
Subscribe to:
Post Comments (Atom)
Tiho:
ReplyDeleteChina coming to life here? Their market has been very strong the last couple of days....do you think it has turned up?
Yes I agree without a doubt. I will write about it in the next post. I think Chinese M2 has potentially bottomed, therefore so has the equity market. As China eases we could have a rally, but not a full out bull market.
ReplyDeleteIf the current rally occurs, we could also assume that Nikkei 225 and CRB Index have bottomed as well, since both of those indices have high correlations to the Shanghai Composite.