August 8, 2015

WE'VE HAD A WHIFF FOR THIRTY YEARS:

Gross Sees Global Economy Dangerously Close to Deflation (Sabrina Willmer and Mary Childs, August 7, 2015, Bloomberg)

Bill Gross, money manager at Janus Capital Group Inc., said the global economy is "dangerously close to deflationary growth."

Once there is a "whiff of deflation, things tend to reverse and go badly," Gross said Friday in a Bloomberg Radio interview with Tom Keene. Gross pointed to how the CRB Commodity Index isn't just at a cyclical low, but lower than in 2008 when Lehman Brothers Holdings Inc. went bankrupt.

In a world of less labor, more globalized trade and falling populations, where is inflationary pressure ever going to come from.
Posted by at August 8, 2015 6:28 AM
  

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