In part 2 of this article series for Bloomberg, Gary Shilling identifies warning signs he sees in the stock market, despite major indexes being near all-time highs. He argues that currency losses are one of the signs deflation is on the horizon:
Currency translation losses for U.S.-based companies are already evident in emerging markets with faltering currencies. When converted into fewer and fewer dollars, earnings from exports to those countries and revenue from operations there look a lot smaller. With slow global growth and the universal rush to the safe haven of the U.S. currency, prospective deflation is spreading to commodity currencies such as the Canadian, Australian and New Zealand dollars.
Meanwhile, to stave off deflation and promote economic growth through exports, Shinzo Abe's government in Japan is doing its best to junk the yen and the European Central Bank is determined to trash the euro.
You can read the full article on Bloomberg's website: http://www.bloombergview.com/articles/2014-10-03/nothing-grows-forever-including-the-stock-market
And check out Part 1: https://www.deflation.com/press/2497-2/