Posted Jan 17, 2014 by Martin Armstrong
Sometimes you just have to be smacked in the face three times before you recognize when is happening. There is a rising tide that DEFLATION is starting to be seen as the real threat facing the world economy emerging out of Europe. I cannot stress enough that Europe is disintegrating before our eyes. Between Hollande who wants to confiscate all wealth so he need not abandon his elitist view of French Communism where Marx got his ideas, and Merkel’s fears of hyperinflation from the 1920s so Germany turns to hyper-deflation, Europe has little to hope for in the years ahead as the unemployed youth are being driven into off the grid survival for European leaders have utterly destroyed their future.
There is at last a growing realization that Europe faces the threat of a Great Depression and that is thanks to DEFLATION. The Economist is reporting this risk now exists. Of course, the International Monetary Fund Managing Director Christine Lagarde is now also warning that Europe must fight against DEFLATION yet cannot see her own recommendation to urgently confiscate 10% of all bank accounts in Europe to bail out the banks is MASSIVELY deflationary. We seriously need a whole new generation of thinkers. These elderly people running governments have to simply go. They are married to old ideas and are undermining the future. Their insanity is placing the entire world at risk both economically and from a geopolitical perspective. Even in Canada they are starting to see DEFLATION as a rising threat. When the Economic Confidence Model turns down in 2015.75, we are looking at a much deeper correction that the 2007-2011 drop.