Someone Finally Said the D Word
Over at Morningstar.com author Robert Johnson, along with his editors, has broken ranks with the financial press and used the “D Word”. Not only was the word Deflation used to describe current price variance but it was actually used in the headline. The article “Deflation Hides the Growth in Consumer Spending” is a good read.
The part I am fixating on is that heretofore you just do not see the word Deflation used in the financial press. Its always its euphemisms like “price declines” and my personal favorite worries of “low inflation” and related. Denying the risks / realities of Deflation in the global economies is basically whistling past the grave yard. It was refreshing to hear it openly discussed.