The Financial Media and Deflation Talk

The financial media has picked up on deflation as the topic of the week or month.

Remember, in the media facts are often rewarded with obscurity or superseded by public relations article placements that need not have too much factual content.

Therefore, some of the deflation information has to do with off-hand economist comment, or technical aspects of Treasury bond price history, or the Japanese bond markets of the past two decades, none of which are fundamental analysis of current U.S. inflationary/deflationary factors.

They fill up media space and content. But they confuse and never enlighten the public. Deep recessions don’t necessarily produce deflation. Most often, it can be stagflation or runaway inflation.