If you’d like to be featured on this blog, here’s a not-so-secret secret: we have a serious soft spot for the other 4 people left in the deflation camp.
Cycles researcher Charles Nenner joined Yahoo Tech Ticker to – be still my heart – reinforce his Dow 5000 prediction, and reiterate that he believes deflation is more of a threat than inflation for the next three or so years.
“I would challenge people: ‘how do you get to inflation?’,” he says, suggesting wage pressures are the key determinant, not food or energy prices or even Fed policy. “What’s clear is that wage demands lead to inflation; people want higher wages and then you get an upside spiral,” Nenner says. “People are still happy they have a job, so I don’t see any wage inflation, so it means there’s no inflation” — at least not in Europe and the U.S.
Here are Nenner’s full interviews with Tech Ticker:
I also have to admit I’m fascinated by cycle guys who have well thought out positions. The fact that they factor in future turns, and don’t just extrapolate out the present into the future indefinitely, puts them ahead of many traditional prognosticators in my book.
Hat tip to friend and reader JL for sending this along!