More on deflation

First, if you look overall at what has happened, it’s massive world deleveraging and debt deflation driving it. As we mentioned before, over $1000 trillion of leveraged markets are unwinding, and if you add up all the central bank efforts to loosen credit markets and do bank bailouts, it adds up to roughly 15 to 20 $trillion.

Well, $20 trillion is not near enough to stop $1000 trillion of markets deleveraging. So, the efforts are doomed to fail.

Highly recommended.