EXPECT DEFLATION FOLLOWED BY INFLATION?

Posted by explogame On Tuesday, 22 December 2015 0 comments
Steen Jacobson

Last year, Steen Jakobsen, the chief economist at the Danish Saxo Bank, predicted that gold would drop in price to $1,200 an ounce and that shares in the USA would rise sharply in price.

Those predictions were correct.

Some of his other predictions were wrong.


Here are his predictions for what MIGHT just happen in 2014:

1. The global recovery will falter.

2. There will be deflation. 

The oil price will fall to $80 a barrel.


3. Technology stocks (shares in such companies as such as Amazon, Netflix, Twitter, Pandora Media and Yelp) will fall greatly in value.

Some emerging markets stocks (shares) will fall in value.

Share prices in France will drop 40%.


4. Germany and France will fall into recession.

5. In the European Union there will be a new tax on any savings above €100,000.

6. The anti-European Union politicians will become the majority in the European Parliament after the May 2014 elections.

Governments have been getting their central banks to buy their government bonds. This is supposed to keep down interest rates and keep down inflation.

7. Japan's central bank will cancel all the government bonds that it has bought from the Japanese government.

Japan's central bank will thus have less capital.

The Japanese government will thus not have to pay 'interest', on these cancelled bonds, to its central bank.

The Japanese government will have less debt.

This will lead to inflation.

8. All western central banks will follow suit.

This will lead to inflation.

Share prices will rise again.

may you like this

0 comments:

Post a Comment

Note: only a member of this blog may post a comment.