Debt Rattle December 8 2015

[Raúl Ilargi Meijer]

NPC Tank truck with plow clearing snow, Washington, DC 1922 • Commodities Rout Deepens As Chinese Trade Data Signal Weaker Demand (Guardian) • China N
[See the full post at: Debt Rattle December 8 2015]

[pipefit]

Commodities are collapsing left and right. You would think there would be signs of monetary deflation, which is, of course, the only kind of deflation that ultimately matters when trying to determine the character of the incoming depression.

Oddly, there is no sign at all of monetary deflation. According to shadowstats, M1,2,&3 are all above +5%, yoy, with M1 recently ticking up to +7% yoy. And the oil:natural gas ratio has held steady at 18:1 for over a year, signally very strong monetary inflation. In early 2009, this deflation indicator dropped all the way to 6:1, below par of 7:1, signaling strong deflationary forces were wrecking havoc, which we already knew from looking out the window.

[jal]

Call it what you want. Deflation, or inflation.
Things are getting worst.
Interest on savings are near zero.
Cost of everything is going up faster than the interest on savings.
Canada’s central banker is talking about doing negative interest rates.
The very rich can borrow money at near zero interest but the ordinary people have got to pay interest at more than the rate of inflation.

Ordinary people have got to grin, bear it and suck it up.

However, those in N. America are lucky that they are not in Greece.

[Author]

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