Inflation on the Horizon? This Analyst Thinks So.October 6, 2010
By Puru Saxena
Hong Kong, China
October 2, 2010
“The inflation/deflation debate is now the ‘topic du jour’ and although we have discussed this issue in the past, we want to throw more light on this very important subject.
Today, many prominent economists (Nouriel Roubini, David Rosenberg and Paul Krugman) and fund managers (Bill Gross and Jeremy Grantham) are forecasting deflation and according to these folks, a deflationary contraction is now ‘baked in the cake’. In fact, these deflationists are extremely worried about the ongoing private-sector debt- deleveraging in the developed world and they are also concerned about the lack of aggregate demand in the industrialized nations. Bearing in mind these two factors, these prominent people believe that deflation is now almost guaranteed and inflation is out of the question.“
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