I think deflation right now is caused by really low oil prices more than anything else. So, the present deflation is illusory in this sense and likely will go away once oil prices skyrocket again. (Whenever that is).
What is important here is to understand that this "Deflation" is temporary. Whether this temporary is one year or 5 years it is unknown at present. However, prices likely will edge up when it is in Saudi Arabia's financial interests very slowly at first.
Saudi Arabia and all Sunni Governments are in various proxy wars with Iran and Russia at present. So, this is important to understand in the context of everything going on here right now.
So, Saudi Arabia and other Sunni nations need for oil cash would have to be balanced against any gains by their enemies Iran, Syria, Iraq and Russia through higher oil prices.
So, as you can see deflation is unnatural and not a part of an actual market economy but rather generated by a war time economy.
And so if this suddenly changes this could be very dangerous for the whole world because of it's extremely unnatural setting and the damage it could do to most nations great and small in many many different ways. So, unless the world prepares for this outcome it could become temporarily catastrophic or lead to a world wide great depression worse than the 1930s.
There may be many elements in addition to this that I'm not properly addressing here. However, this is the biggest single element of deflation that I can presently see.
To the best of my ability I write about my experience of the Universe Past, Present and Future
Top 10 Posts This Month
- Because of fighting in Ukraine and Israel Bombing Iran I thought I should share this EMP I wrote in 2011
- reprint of: Drones very small to large
- The 70s: Wikipedia
- most read articles from KYIV Post
- Keri Russell pulls back the curtain on "The Diplomat" (season 2 filming now for Netflix)
- The ultra-lethal drones of the future | New York Post 2014 article
- "There is nothing so good that no bad may come of it and nothing so bad that no good may come of it": Descartes
- The 60s: Wikipedia
- Jack Ryan from Prime (4 seasons)
- Question for PI AI: Could you describe both personality disorders in general and Narcissistic Personality Disorder in General?
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment