Where Is the Panic Over Deflation? We can tell you where it is not. It is not at the grocery store. It is not at the gas pump. It is not in our electric bill, water bill, cable bill or any other bill. It is not in our health care costs, the Doctor’s Office, Walmart, Kmart, Costco, Best Buy, the farmers market, the stock market, The Boston Market and of course there is no longer any free market. Yet Jason Wolfers (over at Bloomberg) is telling us that “the U.S. is experiencing deflation” and “Right now, the risk of deflation is greater than the risk of explosive inflation. And the probability of continuing to undershoot the inflation target is far greater than the probability of overshooting it“. Something tells us that when the current Fed inflated market bubble bursts this guy will be among the first to tell us that “no one could have seen it coming”.
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