By John Richardson
TEN trillion dollars doesn’t buy what it used to do, according to The Wall Street Journal.
The reason is that despite central banks across the world aggressively expanding their balance sheets, there is no inflation.
“My customers in China are worried about the opposite – global deflation because demand everywhere is so weak,” a polyethylene (PE) industry source told the blog recently.
Supply across many industries is exceeding demand because demographics drive demand in the West, and demographics in the West tell us that demand in the long term will be weaker.
China can longer export its way to economic security because of problems in the West, as China struggles with economic rebalancing.