Central Banks See What They Want in Ignoring Deflation By Rich Miller and Simon Kennedy Apr 10, 2014
Federal Reserve Chair Janet Yellen and her international counterparts are suffering from a case of what psychologists call confirmation bias: They keep insisting inflation will accelerate even as it continues to ebb..
..Global inflation was just 2 percent in February, the lowest since late 2009, when the world was struggling with recession, according to a tally by economists at JPMorgan Chase & Co..
So even with major global stock markets flying high, multi-year low bond yields and narrow spreads and a supposed economic recovery underway due to unprecedented ‘money printing’ and historically low interest rates by central bankers around the world, global inflation has now fallen to the lowest level since 2009 – just after the worst of the GFC!
That’s the power of the underlying deflationary trend which will slap markets back into reality with the next phase of debt crises.
