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GREcovery Interrupted: Greek Deflation Worst In 50 Years
Attention this week was focused on Europe's overall (disappointing) 0.7% inflation print - which sent Draghi back to drawing board - despite the world of sell-side strategists exclaiming that Europe has turned the corner and now is the time to load the boat. However, quietly out of sight for the mainstream, Greece just printed its worst deflation data on record. Consumer prices fell 2.0% on an annual basis as a combination of deep recession, wage cuts, and substantial spare capacity squeeze prices lower. Additionally, we already showed the dismal demise of the macro picture across the European union - heading in a very different direction that the stock markets.. but now, bottom-up, earnings are collapsing too... so remind us again why Europe is a "strong buy?"
So EU inflation is slumping despite years of easy policy...
And peripheral deflation is the worst on record...
Top-down, Europe is ugly...
and no bottom-up earnings are collapsing too...
Buy, Strong Buy, Or Buy It All?
Charts: Bloomberg and @Not_Jim_Cramer
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....so remind us again why Europe is a "strong buy?"
BUY THE FUCKING DIP. Dip
POOR People There, They Are Really Getting Fucked...
Prices dropped 25% from 1929 to 1933. I’d say the central bank is still fucking these poor souls. Deflation is the economy correcting itself and increasing the purchasing power of the average schmo, something the bastards at the EU simply cannot tolerate.
Our entire financial system is based on some inflation occurring. Every couple of generations, this assumption proves to be false, and very bad things begin to happen, like a madman printing trillions of dollars to support asset prices for the top 1% of the country.
http://dareconomics.wordpress.com/2013/11/08/around-the-globe-11-08-2013/
"inflation" is really about centrally-planned "growth." And, once again I'd like to remind folks, this can NEVER turn out well given that we're on a finite planet: Mother Nature isn't increasing the amount of stuff in order to match our desire for MOAR; we only make it look so by extracting more, faster. So, "small" is only the speed at which we approach the cliff; it doesn't alter the fact that it's still navigating us to and over the cliff.
What I'd like to know is what this pro-inflation propaganda is doing on ZeroHedge. Is this site hiring laid off CNBC writers now?
"deep recession, wage cuts, and substantial spare capacity squeeze prices lower." are driving rpices lower? partly. The fact of the matter is that the government is sucking money out of the Greek economy to give to foreigners at the rate of around half a billion Euros a month. if you decrease the money supply prices fall. I am surprised there is any inflation.
That doesn't bode well for a highly indebted nation.
If only they were Gellin with Yellin, she would open up her debt shooter and let them borrow till their eyes bleed.
pods
The only hope Greece has is a Golden Dawn government. Too bad they let foreign Jews pressure the current gov't to outlaw Golden Dawn. Do you have any questions now on who benefits from the austerity and other central bank initiatives that are eviscerating the livelihood of many Greeks?
http://www.totalfascism.com/former-greek-justice-minister-golden-dawn-as...
Neo reactionary movements like the golden dawn are the only hope for a return to nationalism(a government that exists to serve its people). This is because democracy has no loyalties, it can be bought and sold by coporations, banks, foreign unions and self claimed chosen people.
When a government no longer has a religious zeoltry to serve its folk it is bought and sold. The Golden Dawn have this religious zealotry to its folk. In such a system outliers can be cast out of the governmental system because of the religious commitment to the form of government. This is why national socialism is able to circumvent non folk interests.
If you care about the actualy genetically Greek people, the golden dawn is their only hope. Of course if you believe that people are interchangeable and nations are just borders than by all means they are all mere pawns to the global establishment so who cares.
Another example of a "solution" looking for a "problem."
One of the wisest principles I ever adopted was that of ensuing that I take the time to question the premise.
The premise here is that some power structure can replace another one w/o essentially being "same as the old boss." Ask the Russians how these things go. As long as you create a power structure you can be certain that, just as night follows day, that it will eventually fall under the control of ideological zealots who will turn everything upside-down. Hit the history books and have a look for yourself: and if you can actually find an example of something that can resist change please point it out; I'd further add that aiming for NO change is also highly problematic unless you can achieve the impossible of "perfection" from the start.
All that said, I DO believe that there will be continued fragmentation toward the more local. I do not push "solutions" because I'm not a salesman and I further believe that it's better that individuals take the responsibility for deciding how they wish to manage their own affairs.
A real revolution will address the problem. Sadly, most revolutions (like the Russian one) are little more than window dressing. Golden Dawn is one of the first Western movements to put the finger on those who exploit people and their respective nations using credit based money since the National Socialist movement in post WW1 Germany. I am very optimistic that we will see similar movements in other nations in spite of the attempt to suppress them using "political correctness" and "hate" laws.
Much privation is coming for the average person and the cognitive dissonance that will emerge as a result of failing systems promises a very bright future for growing nationalist movements. I can assure you that when that fire begins I will be throwing gasoline on it.
Texas is already there.
Texas is minority white with 70% of the babies born non white. Multi ethnic and multicultural areas are not going to be fun places to live when under extreme financial stress.
In the future, under a perfect situation, you limit the federal government to 5% of the GDP. No money, no power.
a governemt should serve it's people, democracy is and has always been a failure and clearly republics can have their laws subeverted and manipulated.
tribalism, monarchism, or nationalism(that which serves its folk) at least are forms that serve its people not some ideology or "law" that can be subverted and manipulated.
The government must serve the interests of its people. Singapore seems to be one of the few governments that actually serve this purpose currently and certainly no western republic does.
Und fich dich Waffen!! You Nazi piece of shit!
And I'm not Jewish or black but I how many millions of Americans and Brits and Poles and Russians and other allied people died fighting the tyranny you wish to return!
FUCK OFF ASSHOLE!
http://www.youtube.com/watch?v=sTFVMMCwsss
Both of my Grandfathers fought the Germans, one a Texan and one British, both from areas which are now suiciding themselves to the anti-white politically correct Catherdral. My my study of history shows that man is destined to live under some form of tyrrany either it be Dynastic or Democratic. We today are serfs, paying our bit to the king. Unfortuantley however our king sees himself as having no responsibility to his people.
I myself would prefer to live under a system that exists to ensure my posterity can continue to exist. No matter how much i may love liberty, and freedom it doesn't change the fact that people generally do not want the freedom to fail. Our ancestors lived under tribalism for a much longer time than democracy and if we don't return to some form of nationalism(which respects the people of that ethnic nation) then we are all doomed to have our posterity be extinguished like the Afrikaner. Government is force, let that force serve its folk.
"I mean, say what you want about the tenets of National Socialism, Dude, at least it's an ethos." The Big Lebowski
Sad truth is that the ruling class today seems to be governed by a bizarre blend nihilism, satanism, and an evil desire to dominate and exploit to death 99% of the human race. Its all some dadaist work of chaos art to them. The fully intend to cull 90% or more of the human race. How would fascism be any worse?
I personally will insure you do not survive as did my father and uncles and the millions of other freedom loving people who died knowing they were saving this world from the horrors of your twisted logic against humanity. I look forward to the day.
"whenever you find something foul; more often than not, when you peel back the layers you will find the same maggots underneath"..... Adolf Hitler
Fascism is communism dressed up to look like capitalism.
You are still looking at the 20th centuary through the lense of propaganda.
The holocaust is a laced with lies and propaganda. Revision is what historians do, but revision of the holocaust is outlawed? What does that say? The real horrors to come will be those induced by "democractic" countries that have brought in millions of foreign people that will in the end mean a yougoslavian style conflict on a continental scale.
The wests problems today are becuase of the rejection of nationalism. You think our grandfathers fought hitler so their great grandchildren could convert to Islam and their countries flooded with the worlds poor?
I wish I could reply honestly to your post but my country has draconian penalties for those who make public, facts that contradict the "official" holocaust story. Those concentration camps that are open to the public are about as relevant as Disneyland to the actual history of the past. Just look at the nonsense around the numbers on the Auschwitz welcoming sign and the alledged gas chambers. No links but do some digging if you really want the truth.
Never forget who declared war (WW2) first. http://guardian.150m.com/jews/jews-declare-war.htm
I am on very dangerous ground here..... "there is no such thing as hate speech. You either have free speech or you don't".
Ok, I'll bite, because I simply cannot let this pass. You are indeed on very dangerous grounds here, not because of legal issues (fuck legal penalties for negationism, I couldn't care less), but because of moral reasons. Denying the occurrence of the holocaust is like killing the millions of people who perished in it in the most horrible ways twice over. I'm not going to confront you with the abundance of news reels, photographs, personal accounts, interrogations and so forth of what happened, I'll merely submit to you two anecdotes which come to mind: the first one concerns general Georges S. Patton, not exactly a nancy-boy by all standards. The only time he was seen to vomit in his helmet, was when he visited a liberated concentration camp. And your very own general of the army, Dwight D. Eisenhower, was extremely reluctant to enter a liberated concentration camp because he knew what he would be confronted with, but he felt he had no choice because he wanted to be able to refute any later allegations that concentration camps had never existed (he knew that negationism would rear its ugly head sooner or later) and were merely dreamed up by the allied victors. Even the likes of Hermann Göring at the Nürnberg trials stammered that they had never had any knowledge of the dreadful things that occurred in those camps and that Heinrich Himmler had worked in the utmost secrecy to conceal these heinous crimes (yeah, right). As to the link you provide: the headlines remind me of what could be read at the time in the Völkischer Beobachter (Goebbels) or Der Stürmer (Streicher - feel free to look him up, he is an extremely nasty piece of work). One other thing: never ever mention Disneyland and concentration camps in the same phrase again. Oh, and need I say it? I'm 200 % aryan in your book. Not a drop of jewish blood in my veins.
You watch too much tv and trash hollywood movies and it clearly shows in your total fantasy world perspective. I suppose you believe in Santa Claus too. You believe in what you you want but don't tell me to abide by your twisted hollywood inspired perspective!
It really is a "Red Pill/Blue Pill Universe".
How much longer can this possibly go on? I feel like committing myself to a mental institution.
Re: How much longer can this possibly go on?
Years and years. As long as the vast majority of dumbasses can't define what "this" is, then the sociopaths can keep doing "it".
You'll know "it" is at an end when there's a name for "it". (A common name used by the dumbasses, btw.)
The cognitive dissonance is louder now than I have ever heard it before...
BBZZZZZAAAATTT! BBZZZZZAAAATTT! BBZZZZZAAAATTT! BBZZZZZAAAATTT! BBZZZZZAAAATTT! BBZZZZZAAAATTT! BBZZZZZAAAATTT! ....................................
at the current pace it seems like it can continue forever until we are all poor slobs living on EBT in tiny one room apartments and getting death paneled at 50
Just go about doing what you know is needed to be done. Keep busy. And hope that others figure out from your example.
Remember that it happens slowly and then all at once. If you proceed under the assumption that it'll go years then you'll likely be caught short. If you proceed as though it could happen tomorrow then the worst is that you are prepared and look a bit out of place (depending on where you are).
Fundamentals. If yours hold up to sound logic then there's absolutely NO reason for doubt about the WHY. But as they say, execution is the trick... and given that no one can execute the unknown with precision just accept that you're trying your best (but do do your best, otherwise why bother?).
Buy the fuckin R.I.P.
The shiniest of all shiny objects is a falling knife.
One good reason for holding some FIAT$ in physical cash.
But, last I checked all my ounces are still there, shining...
What absolute bullshit.
Greek deflation is much more tan 2% if one takes into account the drop in rents, real estate prices, hotel room rates as well as clothing.
What is the price of food and fuel? Wages?
And they can't buy aspirin because none is available! ASPIRIN for God's sake!
Wait, prices can go *down*??
Must be nice having a marketplace that works & a government that doesn't directly control the supply of money...
"Wait, prices can go *down*??"
To a point...
The trouble will be how large-volume production can persist with signficantly reduced demand (because of wages going down). At some point one cannot go below a certain threshold, and at that point we'll see what it means to experienced economies of scale in reverse: shit will have to be priced HIGHER*; at this point we'll find out what truly is essential shit (I'm thinking that iCrap and Twatter ain't going to pass this point).
* Can pretty much bet that energy and food costs will push back up; US food costs as a percentage of income is WAY low compared to the rest of the world and to a more historical norm. On the energy front less money will go into R&D and more into maintenance, which means an increase in scarcity (until we totally collapse).
"Deflation" - LMFAO!! What is the quality of life and cost of living looking like motherfucker?
Re: What is the quality of life and cost of living looking like motherfucker?
Actually, allot of people didn't even notice the US "Great" Depression. My grandfather made beer barrels (as a worker making them, not a owner) right through the entire thing, and bought up forclosed houses. I don't think his family were affected at all.
Allot of survival is just luck.
Indeed, and there were resources for many to live off the land then. Now tell me, what's the population look like today?
About half as many people back then as today. And the US was a net exporter.
And for a visual:
http://www.shutterstock.com/s/%22fat+man%22/search.html
And avery different agriculture model.
There are a lot of people around these days who have never picked up a shovel.
My favorite definition of "luck" is "when preparation meets opportunity."
The moral of that definition is that we all should be prepping like mad so we can take advantage of any of the many "opporutunities" coming at us in the distance like a locomotive.
As a deflated economy it will have awesome rebound potential, while the inflation via debt and debasement cling to their fiat dreams. Reset has many ways to manifest itself. In EZ south its death by suffocation and survival of the most healthy.
Thats the price of being betrayed by its own elites in what feels like another age.
Will democracy survive this painful experience is another subject that is uncertain to fathom in first world.
not to correct your assertation, but i think democracy died...
Re: but i think democracy died...
Naa, come on. Has God died? It's still great for bullshitting the dumbasses. Never underestimate the ability of the sociopaths in being able to create bullshit for the dumbasses.
ponzi lives on and on and on. but the day that the serfs have nothing but labor to give will be the day of, well, not sure how this ends, but hoping some violence ensues b/4 too late.
as in snipping the brits, many shots fired thereafter and liberty was born again.
looks like the CPI fuck wads can't lie anymore - so the deflation number is set small
deflation is already here - has been for years
just like October payroll - 200K plus new jobs - hey Barry, the COUNTRY CALLS BULLSHIT!!!!
when labor participation is less than half we will have 5 percent unemployment and the fed can taper!
yep, with some serious ass patience we will see the same result.
austerity in the form of taxes, gov mandates(ocare) and outright taking.
ongoing to the same outcome...
"So remind us again why Europe is a "strong buy?""
Ooh, ooh, I know the answer to this one...because Goldman is SELLING!!!!
Is Greece going to default or are they just going to exterminate all those people over there.
Yup, this is covered in the video below--and it's FUNNY. "WORLD OF DEBT" -- SEE IT!
https://www.youtube.com/watch?v=99xsqxzJnXs
See KARL DENNINGER'S STOCK PICKS BELOW--MUST SEE!!
https://www.youtube.com/watch?v=XqWIS0O2gIk
Why the panic here?
What is important to note, it that Greece is experiencing both INflation and DEflation. What is happening is that anything that is a 'global' commodity is NOT deflating -- but is either staying level or in inflating. Where the deflation is happening is in EVERYTHING 'else' that consumers purchase - because the Greek consumers CANNOT AFFORD much of anything. A similar scenario is taking place in the US, and will only accelerate in the future. The real squeeze will be on the 'middle men' who add value (and price) to something. For example, if you bake designer cupcakes you will get squeezed by higher flour and sugar prices -- while at the same time the unemployed (or highly taxed) consumers will not be able to pay for fancy cupcakes. So you either cut your prices or go out of business. So not only do we have more temporary and minimum wage jobs, but the next layer up (the middle men), are also going to be squeezed. And sadly, the 'middle men' are also the small business owners who were part of this country's dying middle class.
If I remember my high school logic correctly,the scientific method is a) propose theory,b)design experiment to verify theory or discredit it and c)make sure that external error does not affect experiment.
The greek people have had their political systems repeatedly interfered with over the last century.It would be interesting to speculate where they would be if they would have been left alone.Kissinger doesn't even mention much in his memoirs about the Cyprus episode,which says alot by omission.
Also a great deal of pain suffered by a culture immersed in religion.Some coincidence?
In April 2006, while the Case-Schiller housing index reached its peak, you could buy a 5 year CDS on Greek debt for less than 15 bp (.15%) per year.