Hyperinflation or stagnation, Which is worse? Ask Latin America.
“For decades, the region’s problem has been inflation and the incipient risks of currency and debt crises. That pathology lives on in places, most painfully in Argentina and in the disaster that is the Venezuelan economy. But for much of the region, the fear of inflation and instability has been replaced by a fear of deflation and secular stagnation. It is a remarkable change.”
USAGOLD note: Secular stagnation – the quiet depression – is not confined to South American countries alone. It exists in varying degrees just about everywhere on the planet and if the numbers out of Europe over the past week are an indicator, it could be raising its voice. Industrial output in Germany plunged 3.5% from November to December, while French industrial output fell 2.8%.
Repost from 2-8-2020