Some very insightful stuff here. You can already see deflation at work in the drop offs in commodity futures like oil and crops - where big harvests have combined with dropping consumer spending.
This seems to point towards another QE - to ramp out of this stall and to shrink the deficit through a fiscal response. But the fact that the banks are sitting $1 T USD seems to point against further QE creating any kind of movement.
How do we change things on the demand side? There’s still growth… demand has to ramp sometime.
