Japanese Style Deflation
Only 24 hours after NIA released its latest article in which we said, “The most popular forecast by Wall Street analysts today is that the U.S. is headed for a long period of deflation, similar to Japan’s ‘Lost Decade’”, Federal Reserve Bank of St. Louis President James Bullard said that the Federal Reserve promising to leave interest rates near zero for an extended period could cause the U.S. to become “enmeshed in a Japanese-style deflationary outcome within the next several years.”
CNBC’s Larry Kudlow had a segment last night about if Japanese style deflation is coming to America. His guest, David P. Goldman of First Things magazine, said that the U.S. today “very closely resembles Japan of the 1990s”. He said that the only thing that can prevent Japanese style deflation from occurring in the U.S. is “American entrepreneurship”.
NIA believes deflation is the last thing in the world Americans need to be worried about. Japanese style deflation would be the best possible outcome of our upcoming fiscal crisis, but NIA believes this outcome is nearly impossible. In our opinion, Zimbabwe style hyperinflation is the inevitable outcome. Even if the U.S. had enough “American entrepreneurship” to create 700 new companies as successful as Apple Inc., NIA believes we are still headed towards hyperinflation.
NIA is currently producing a new 12-minute movie called “Japan: America’s Lost Decade”. It will be the most comprehensive report ever done on this topic. Be ready for NIA’s upcoming special video report. It will be released approximately one week from now.
If you would like your friends and family to be the first to see NIA’s new upcoming movie, tell them to become a member of NIA for free at: http://inflation.us
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