12/2/2014
By Charles Payne, CEO & Principal Analyst

Deflation is a four- letter word for many economists, as it has been part of the aftermath of major historic periods of The Great Depressions of (1890, 1893, 1907, and 1930). More recently, it has been the anchor for Japan and its fabled lost (2) decades.

I do not think we are in the red zone yet, but this is an indictment against Fed policy and artificial attempts to manipulate large economies. It is not unlike that Hollywood star that keeps going under the knife, even though it is a fool's errand.

Some economists like Friedman were so afraid of deflation, and last night, a viewer was upset I was complaining about it when it helps folks on a fixed income. Can the benefits truly outweigh the risks? I do not think they can, but this could all work itself out once central banks move out of the picture.  However, leading the rebound will be crude oil.

The use of fossil fuels is essential to sustain growing and great economies. However declining commodity prices are putting a lot of pressure on companies that produce them. What steps can be done to protect those companies and our economies?

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Charles Payne
Wall Street Strategies

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