Welcome to the Risk of an Inflation Shock

The news is full of stories about deflation and negative interest rates, but take away the $80 a barrel decline in oil prices since March 2014, and the inflation trend appears to have popped up to more than 2 percent.

The Associated Press

Report: ‘Real’ China GDP Shrinks as Demand Collapses

Lombard Street Research (LSR) has reported that China’s “real” (after-inflation) GDP actually fell -0.2% for the quarter ending March 2015. Despite the official government claim of +1.3 percent growth for the quarter and +7 percent annualized growth. China’s quarterly performance

Xinhua/Guo Chen/AFP

Farmland Prices Deflating: First Decline in Three Decades

Farmland prices that had been enjoying a 28-year bull market finally turned down in 2014. Despite real estate, stocks, bonds and commodities crashes over the period, farmland had never had a down year since 1986. However, the Wall Street Journal has reported that farmland suffered a loss of 3 percent last year, “reflecting a cooling in the market driven by two years of bumper crops and sharply lower grain prices, according to Federal Reserve.”


Trade War: China Dumped $77B in US Bonds to Devalue Yuan

Federal Reserve data published late on February 18 reveals China dumped about $75 billion in US bonds in the last six months of 2014. The action explains why interest rates on US Treasury bonds jumped by 23 percent since January, and economic indicators show the US economy growth is slowing and worldwide deflation is accelerating.


Reuters: UK Close to Deflation, But Don’t Worry

(Reuters) Deflation is close – but don’t worry. That was the message from Bank of England governor Mark Carney, as he explained why UK inflation is at its lowest level in nearly 15 years. Follow Breitbart London on Twitter @BreitbartLondon


China’s Unmassaged Growth Rate Plummets to 1.7%

Diana Choyleva of Lombard Street Research, who produces an “unmassaged” calculation of China’s true economic growth, just reported that China’s fourth quarter GDP growth plummeted to 1.7 percent, versus the official 7.4 percent rate.


Switzerland May Be Preparing for the End of the Euro

Something is brewing in Europe now that has the Swiss National Bank worried. If you haven’t been paying attention in the last 24 hours, the currency and equity markets have been rocked by a surprise move to delink the existing currency peg


China is Exporting Deflation to Europe

China’s Producer Price Index (PPI) that measures the price changes for the goods and services produced by the nation has fallen for 32 straight months. As the factory to the world, China has been exporting deflation. The economic impact has been increasing the real burden of debt, driving down worldwide wages and discouraging consumption.