| Three trends have come together that are igniting a deflationary environment. Central banks are fighting them with a fire hose of quantitative easing (inflation). The first trend, and it’s slow at this point, is deleveraging the greatest debt bubble in history. The second is aging populations in the developed world, and the third is falling commodity prices. If governments and central banks are intent on fighting deflation, as they clearly are, they can’t be happy about commodity prices, especially oil, continuing to fall.
I’ve been arguing for years now that falling commodity prices is one of the least recognized indicators of the next global crash and financial crisis. The falling prices trigger a vicious cycle of slowing exports for emerging countries...............................................Full Article: Source
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