why the markets are falling?
It looks Central Banks are loosing the battle against deflation! yes QE & zero rates are not working so well lately. Before Draghi gave a conference call and the markets explode higher. Today the market is a bit insensitive. They need to start sending money to be spent asap.Structural deflation is the backbone of the macro outlook we endorsed for the last few years
Francesco Filia , From Fanasara Capital
What are the drivers for Deflation?
Falling working population
over-indebtedness
Diminishing effects of monetary policy
Technological Advances
I have to agree with this very smart Macro manager. Deflation is the big menace. Debt and Tech are two very deflationary drivers. Technological improvements can help do more with less and replace people with machines. That is not going to stop.
The human race faces one its most dangerous centuries yet as progress in science and technology becomes an ever greater threat to our existence.
Stephen Hawking
My view is that even the green arrows in the graph below (costs have soared in the last 10 years) will turn down soon.
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