Helping You Prepare to Survive & Prosper During Deflation
Monetary deflation is one of the least-understood economic environments for investors, yet one of the most potentially devastating to the unprepared.
Deflation.com connects you with the experts and resources that will equip you not only to stay safe during deflation, but to take advantage of the unique opportunities deflation can provide.
What are the Causes of Monetary Deflation?
Learn the two main causes of monetary deflation and an example of how deflation played out in Japan in the 1990s.
What’s the Definition of Monetary Deflation?
Many investors think that “falling prices” is the definition of deflation. This is not accurate. Learn the definition of monetary deflation.
Recent Expert Commentary
Drowning in Debt
Before a tsunami hits, the tide recedes dramatically. Warren Buffett famously said that “when the tide goes out, you can see who has been swimming naked,” in reference to companies and investors who are over-leveraged when events turn against them. The tidal cycles on the river Thames here in England remain as predictable as they…
U.K. House Price Deflation
It looks set to deepen. The latest data on British property shows that deflation is now official. The Halifax House Price Index, a popular barometer of the health of the U.K. property market, declined by 1% on an annualized basis in May. This is the first annualized contraction since 2012 when Britain was still recovering…
Simply the Bust
Bankruptcies are rising, but the bond market still hasn’t got the memo. Browsing the FT over my morning vanilla latte in the early summer sunshine today (you’re in Essex, not Rome, get on with it: Ed), my eyebrows were raised at an article titled, “U.S. credit squeeze triggers rise in corporate bankruptcies.” Eight companies in…
Debt Stress Rising
Signs of a breaking point coming. Most people thought Ben Bernanke was joking when, in 2002, the former Fed Chair said that, in an effort to fight an economic downturn, the Fed could throw money out of helicopters. Fast forward to 2020 and that’s exactly what happened, well, metaphorically at least, when the U.S. government…
Powell’s Burns Moment Cometh
The Fed Chair is probably haunted by the ghost of Arthur Burns. The current bout of accelerating consumer prices that we are living through has brought back analyses and debate about the 1970s and how a similar problem was solved. Credit is wholeheartedly given to Paul Volcker who, at 6 foot 7 inches tall and…
Crunchety Crunch
The credit crunch continues. The European Central Bank published its Euro Area Bank Lending Survey (BLS) for the first quarter this week and it provides further evidence that the supply of, and demand for, credit is drying up. This is the headline paragraph from the report: “In the April 2023 BLS, euro area banks indicated…