Thread: Japanese Style Deflation Fear Strikes Global Bond Markets

Japanese Style Deflation Fear Strikes Global Bond Markets

Interest-Rates / Deflation
Aug 12, 2010 - 09:33 AM

By: Gary_Dorsch

The US-economy has not experienced sustained deflation since the Great Depression of the 1930’s, when consumer prices fell 10% between 1929 and 1933. But Japan has been battling falling prices since 1995, – triggered by the bursting of the Nikkei-225 equity bubble, and a unrelenting slide in land prices. Central bankers and macro-economists from all corners of the earth have been studying Japan’s descent from its giddy economic prosperity in the 1980’s, and into the deflation trap in the 1990’s, that Tokyo’s financial warlords have still been unable to remedy.

Nowadays, central bankers must be watchful, - not only against the traditional worry of inflation, but also to defend against the devil of deflation, - well before inflation dwindles to zero-percent. That’s because deflation is more debilitating to economies - and harder to overcome - than inflation. In Australia, Brazil, China, Chile, Israel, India, and Peru, central bankers have tightened their monetary policies this year to control inflation. However, in England, Japan, and the United States, and to a lesser degree in the Euro-zone, central bankers are engaging in the radical scheme of “Quantitative Easing,â€

Japanese Chart Pattern Could DOOM the DOW
Stock-Markets / Stock Markets 2010
Aug 12, 2010 - 12:03 PM

By: INO
Video at the link: http://www.marketoracle.co.uk/Article21843.html

"It's déjÃ* vu all over again". Is one of Yogi Berra's famous original quotes and the same can be said for the DOW right now.

The weekly chart on the DOW is flashing the same Japanese candlestick signal that it had earlier in April of this year. Back then the DOW dropped from 11,200 to 9,700 in the space of just 10 weeks!



If nothing else watch this video as this could be one of the most important weeks for the DOW and its future. The video runs three minutes. You will find it both interesting and educational from both a Fibonacci and Japanese candlestick point of view. http://www.ino.com/info/610/CD3174/&dp= ... mpaignid=3

Please feel free to comment on our blog with your thoughts on this market.

As always our videos are free to watch and there are no registration requirements needed.

Adam Hewison
President, INO.com
Co-creator, MarketClub

http://www.marketoracle.co.uk/Article21843.html