The hottest Deflation Substack posts right now

There will not be durable deflation in the future unless major changes happen to the dollar or the Federal Reserve.
Technology like AI can lead to deflation by lowering prices, but central banks like the Federal Reserve counteract this by absorbing the deflation.
A special type of bad deflation occurs when dollars are taken out of circulation, often due to events like financial panics, leading to economic challenges.

The art market is experiencing deflation as buyers prioritize debt repayment over new purchases.
Debt deflation and low wages worldwide are driving the fall in prices of goods, services, and assets.
China's economy, as the world's second largest, plays a significant role in global deflationary pressures and may require a drastic shift in economic policy to avoid a crash.

Recent data shows deflation in the Chinese economy, affecting consumer prices and factory goods.
Deflation poses challenges for businesses, as consumers may delay spending anticipating lower prices.
Bank of England aims to maintain 2% inflation, highlighting the negative impacts of deflation on business profits and debt.

Disinflation means prices are still going up, but not as fast as before. It's a slowdown in inflation, which can be seen as a good sign for the economy.
Deflation is when prices actually fall, which can seem good for prices but often leads to negative effects like less spending and economic slowdown.
A balanced approach is crucial. Some inflation is often healthy for the economy because it encourages people to spend and invest, avoiding the risks linked to both disinflation and deflation.

Economists disagree on whether we are heading into inflation or deflation, but both have big impacts on investing. It's important to understand how these economic changes can affect your portfolio.
Inflation can hurt stock values because it increases costs and taxes while the ability to raise prices might not keep up. Companies with strong brands can handle inflation better than others.
If you expect high inflation, consider investing in real assets or companies that can pass costs to customers. For deflation, focus more on financial assets and companies selling essential products.

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