How wonderful. I hope Jim ‘Bow’d Tie’ Rogers is enjoying the deflationary vortex he moved himself and his family into. The decadent state of Singapore just reported a record 17th consecutive month of consumer price drops, indicative of an economy under significant deflation pressures.
The record price slump is the latest sign of a sputtering economy. Gross domestic product growth was flat on an annualized basis in the first quarter compared with the previous three months, the trade ministry said earlier this month, just as the Monetary Authority of Singapore unexpectedly eased its policy stance, adopting an approach last used during the 2008 global financial crisis.
“The slump in oil prices is certainly one of the key factors for the negative inflation,” DBS Group Holdings Ltd. said in a research note before the data release. “But the slowdown in growth momentum and the impact of earlier macro-prudential measures on housing and car purchases are also having a significant impact on the headline number.”
Everything I read says “THIS IS THE WORST DISASTER SINCE 2008”, yet markets are straddling new highs. The argument for that is “well, this news is priced in. The markets are merely forecasting future growth, future inflation, future economic boom.”
Or, another theory would suggest you’re all dodo birds, ostriches with heads firmly placed in the sand, waiting around for an anvil to drop on your heads.
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I knew Singapore CPI would be the harbinger. No one seemed to want to believe Singapore CPI would be the canary.
Showtime…THERE are so many Canaries Flying all around. Central Bankers has made such a BIG UGLY BUBBLE out there. Kinda getting really scary.