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Germany Is Officially Back In Deflation: Stocks Slide

Tyler Durden's picture




 

For the first time since October 2009, Germany saw Consumer Price Inflation fall in January. Missing expectations for the 2nd month, Germany's deflationary 0.5% drop in CPI is the worst deflation since July 2009 and comes just 3 weeks after Europe broadly entered the dreaded deflation spiral of doom so many status quo economists are terrified of.

 

Oops...

 

 

Just a good job Draghi unleashed Q€ ... oh wait inflation expectations have tumbled since then too...

 

and stocks are sliding on the news...

 

 

Charts: Bloomberg

 

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Thu, 01/29/2015 - 09:13 | 5719268 the not so migh...
the not so mighty maximiza's picture

R-E-C-O-V-E-R-Y

Thu, 01/29/2015 - 09:16 | 5719272 Oracle 911
Oracle 911's picture

Sure, but I bet the life in Germany isn't cheaper then a year ago.

Thu, 01/29/2015 - 09:18 | 5719282 Headbanger
Headbanger's picture

Yeah but deflating soccer balls isn't the same as....   Oh THAT deflation..

Thu, 01/29/2015 - 09:27 | 5719307 ukspreads
ukspreads's picture

DAX at all time highs, BTFD 

Thu, 01/29/2015 - 09:35 | 5719337 Smegley Wanxalot
Smegley Wanxalot's picture

The All Time High aint All Time High Enough. 

Fuck you serfs for not buying more shit you dont need!!!!  (SYDN)

Thu, 01/29/2015 - 09:53 | 5719401 negative rates
negative rates's picture

BRASS MONKEY, that funky junkie.

Thu, 01/29/2015 - 11:03 | 5719744 Pinto Currency
Pinto Currency's picture

 

 

In a deflation, money buys more goods.  Watch gold and silver (money) continue to appreciate despite the paper market attempts to contain them.

Thu, 01/29/2015 - 16:41 | 5721801 asteroids
asteroids's picture

The DAX will fall 50% from where it is now. That will be fair value. When, who knows? Next month, next year? But it is coming.

Thu, 01/29/2015 - 09:37 | 5719338 giovanni_f
giovanni_f's picture

Oracle 911, you are right. From my German friend:

- Food prices rise constantly, especially organic meat and fruits.

- Public Transportation fare in  the city of Munich is up 10%

- Private health insurance up, depending on your insurer how much

- Prices of energy, water, public services in general know only one direction, this is up

- The only thing down is the price of oil and possibly the amount of US$ it takes the US to buy a German politicians support for the war against Russia.

 

From my own experience of frequent trips to Germany I can tell you there is NOTHING down except everything fuel.

Thu, 01/29/2015 - 11:20 | 5719833 Oracle 911
Oracle 911's picture

Well, I live in Europe, and in my country although CPI is around -0.7% life isn't cheaper either.

Thu, 01/29/2015 - 11:34 | 5719926 AmericasCicero
AmericasCicero's picture

"The shadow of the crisis has passed"

Thu, 01/29/2015 - 09:16 | 5719271 dirtyfiles
dirtyfiles's picture

for some reason the charts wont cooperate with Draghi

Thu, 01/29/2015 - 09:16 | 5719273 Brazen Heist
Brazen Heist's picture

In other unrelated news, tomorrow is officially the last day the LBMA stops publishing GOFO.

Thu, 01/29/2015 - 09:16 | 5719275 Global Hunter
Global Hunter's picture

Coming soon a 600bn EUR/month qe.

Thu, 01/29/2015 - 09:16 | 5719280 Spungo
Spungo's picture

Maybe they could impose some kind of law that makes it illegal to lower the price of things. 

Thu, 01/29/2015 - 09:20 | 5719284 Bioscale
Bioscale's picture

Funny, I haven't seen any prices in Germany to be lower than 2 or 3 years ago.

Thu, 01/29/2015 - 09:32 | 5719328 hooligan2009
hooligan2009's picture

"these are not the droids you are looking for"

Thu, 01/29/2015 - 09:19 | 5719286 luckylongshot
luckylongshot's picture

Goes to show that if Rothschild banksters are left to rape  middle class Europeans for long enough they start to wipe out the middle class.

Thu, 01/29/2015 - 09:23 | 5719290 Senduko
Senduko's picture

NEIN NEIN NEIN

Thu, 01/29/2015 - 09:23 | 5719294 George Soros
George Soros's picture

Slide?? DAX under 1% of its ATH. 

Thu, 01/29/2015 - 09:39 | 5719314 ukspreads
ukspreads's picture

Excatly and atter putting on 1000 points in the last three weeks - !
Wake up people, Indices aren't connected to the state of the econony, they only reflect how much QE money is getting shovelled in per month BTFD ! 

Thu, 01/29/2015 - 09:34 | 5719333 RiverRoad
RiverRoad's picture

You can stick all the $5.00 price tags on apples you want to but if the majority of people out there only have a dollar to buy that apple with, guess what?!

Thu, 01/29/2015 - 09:39 | 5719344 Spungo
Spungo's picture

I make 7k a month by listening to this song on a never ending loop:
https://www.youtube.com/watch?v=kZzBd41NuZw

Thu, 01/29/2015 - 09:50 | 5719380 smacker
smacker's picture

"Germany's deflationary 0.5% drop in CPI is the worst deflation since July 2009"

"Deflation"? s/b "disinflation"

Thu, 01/29/2015 - 10:05 | 5719436 Racer
Racer's picture

worst deflation

Bring it on, I LOVE deflation! Beats nasty inflation anytime that steals more with their inflation tax

 

Thu, 01/29/2015 - 10:13 | 5719466 Son of Captain Nemo
Son of Captain Nemo's picture
Germany Is Officially Back In Deflation: Stocks Slide

Müssen sich keine Sorgen darum machen, ob die Inflation fürchtet zu verlieren Sie job oder ihre Rente ...
Das, was sie sich konzentrieren sollten, bis auf der rechten Seite ist nun die Abschaffung der von den faulen Araber genauso wie wir!

Fürchten Sie Nie "Super Jueden" ist hier! !!

Thu, 01/29/2015 - 10:18 | 5719500 wendigo
wendigo's picture

Why exactly are declining prices such a bad thing? Seems to benefit most people. 

Thu, 01/29/2015 - 11:20 | 5719836 Bioscale
Bioscale's picture

Falling debt amounts would not make the inflationary policy possible. No debt money, no monetary policy. Banksters will do anything to avoid this.

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