“Weak oil, gold and stock prices, rising demand for dollars and the likelihood of an implosion in Europe signal crippling deflation may strike the U.S. economy, says David Goldman of financial research firm Macrostrategy.
“It’s an extreme risk, though I don’t think it’s an inevitable outcome,” Goldman tells CNBC’s “The Kudlow Report.”
Greece and Spain are coming under increasing financial duress as the debt crisis heats up, and should one find the strain of austerity measures and hefty debt burdens too much to endure and abandon the eurozone, a domino effect could ensue and push the continent and then the U.S. into a deflationary spiral.”
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