Here come the deflation, recession, depression blow horns:US Stocks Retreat as China Signals No Additional Stimulus - Bloomberg
U.S. stocks fell, extending the fourth straight weekly slump in the Standard & Poor’s 500 Index, as China quelled speculation the government will add to its stimulus plan and Goldman Sachs Group Inc. said the global recession is worsening.
General Motors Corp. retreated 15 percent after its auditor said there’s doubt the automaker will survive. JPMorgan Chase & Co., Wells Fargo & Co. and Bank of America Corp. dropped more than 4.3 percent on concern the biggest U.S. banks by market value will have their credit ratings cut. The market extended its decline as Goldman Sachs forecast that the world economy will shrink 0.6 percent this year.
And while we're at it, here are the dollar bullish blow horns:Trichet Indicates ECB May Cut Rates Further in Next Months - Bloomberg
European Central Bank President Jean-Claude Trichet indicated policy makers will reduce their benchmark interest rate further to combat a deepening recession after cutting it to a record low of 1.5 percent today.
“We didn’t decide ex-ante that this was the lowest point that we could attain,” Trichet said during a press conference in Frankfurt today after the ECB lowered its main rate by half a point. “Further decisions will depend on the judgment of the governing council discussion.”
The economy of the 16 euro nations is shrinking faster than the ECB expected just three months ago as the global slowdown curbs export demand and companies lay off workers. Trichet said today the central bank has cut its economic forecasts again and expects inflation to stay “well below” its 2 percent ceiling this year and next.
USD Scenario #2 locks and loads and it is being mapped out every step of the way in NFTRH. It appears that the next round of readily apparent inflation will come sooner, rather than later. Counter Intuitive, given the strong dollar? I think not.
