On 4/15/09, I wrote a couple of posts about real interest rates and deflation. The warning bells are going off in this country: the longer the deflation trend continues, the more likely it is that we wind up in a depression.
The rest of he world is getting those signals as well:
British economy falls into deflation for first time since 1960
http://www.telegraph.co.uk/finance/financetopics/recession/5192521/British-economy-falls-into-deflation-for-first-time-since-1960.html
Spain's Falling Prices Fuel Deflation Fears in Europe
http://www.nytimes.com/2009/04/21/business/global/21deflate.html?ref=global-home
Price falls fuel Japan deflation fears
http://www.ft.com/cms/s/0/feab77dc-288a-11de-8dbf-00144feabdc0.html
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