Liu Junluo: We have already entered the economic depression

This is a short post from Liu Junluo, he's been busy writing a book. I'm not sure how much this squares with Prechter and the other deflationists, but this is close to my own view, that first we have deflation and then inflation. Marc Faber has been more inflationist in his arguments, but he has said he holds that position because if the market or economy have a severe decline, the response will be money printing.


My synopsis: Liu Junluo says that at a March 14 lecture in Beijing, he said the U.S. Dollar Index would be at 85 by the end of the year, maybe 90, but this was his conservative estimate. He says the U.S. dollar is about to make its greatest move in our lifetimes. He compares the current situation to that of state of Qin, which conquered the other six states to unify China in the Warring States period, that this was a very violent period. He says that gold and the U.S. dollar rising together is seen as a sign of coming inflation by most people, but that in fact it conceals the U.S. dollar's spectacular move. He says that today's savings are tomorrow's growth and that those Chinese who believe in inflation will soon want to die. He reiterate that first their will be horrible deflation, and that will be followed by hyperinflation.

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