- the end of gold - , page-3

  1. 1,004 Posts.
    A little more news this morning pointing towards deflation:

    http://www.theaustralian.news.com.au/business/story/0,,24966881-20142,00.html

    ""When prices are falling, people don't want to buy because it will be cheaper next week or next month, and it ends up being entrenched -- people stay on the sidelines so retailers cut prices further and then they have to cut jobs, so it builds up a momentum," Mr James said.

    However, lower interest rates may not offer the lifeline retailers have been hoping for after consumer confidence fell in January following rises in November and December.

    "You can put money into people's pockets, but that doesn't mean they'll spend it if they don't have the confidence to do so," Mr James said. "

    Strictly speaking we're not seeing deflation yet, of course. And it may well be that we see deflation followed by inflation - which is my punt.
 
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