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The bond market is telling us that there could be hard economic times ahead and that deflation, for the time being, is more of a threat than inflation.
Leading indicators are also pointing to possible economic weakness ahead.
The Euro zone is being pulled apart by the economic asymmetry of its members, the less productive among them (Greece, Spain, Ireland, Portugal and Italy) being unable to keep pace with the very productive German economy.
The U.S. money supply M3 is contracting. The Chinese bubble is dangerously approaching the bursting point. -And, the deflation of debt all over the place threatens to plunge the world economy into a deflationary tailspin.
In this context, there is a good chance of a double-dip recession next year, in 2011..read more
