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Bloomberg/Rich Miller and Enda Curran
“The sinking global economy is suffering through a colossal disinflationary shock that could briefly push it into dangerous deflation territory for the first time in decades.”
USAGOLD note: The gravitational pull of disinflation was a constant in the economy even before the coronavirus. Now it is fully asserting itself according to this Bloomberg article – at least in the short term. Debt becomes an enormous weight under such conditions with threats to the stability of the financial system multiplying accordingly. The last crisis was essentially a disinflationary breakdown. Gold rose to the occasion:
