Europe in Deflation!

Monday, December 02, 2013 Francisco Carneiro 0 Comments

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1.OECD's chief economist, Pier Carlo Padoan, said that the Eurozone deflationary risks "may be slowly increasing" and "the ECB must be very careful and be prepared to use even non-conventional measures to beat any risk of deflation becoming permanent.

2.Europe is very weak. ECB is Contemplating a a new LTRO- with a twist.

http://soberlook.com/2013/11/ecb-contemplating-new-ltro-with-twist.html

Nothing new here, as i have mentioned in several posts in the past the problem with the world is excess capacity/overproduction. When that is the case we have deflation, people try to lure customers with the lower price. The only companies that can do well in this environment are?

1.Brands

2.Companies that help to cut costs (Automation & Robotisation)

3.Monopolies

What to do? Invest your money in the Robot factory or in the Bigger get Bigger theme.

See this link about the same subject

http://thoughtmeme.blogspot.pt/2013/11/brands-monopolies.html