Wow! Can you say flight to safety?
can you spell deflation? flight to safety is into ST UST
it depends on how you define deflation.if you define it as a fall in money supply then deflation is not yet happening. yes, asset prices and everything in sight is falling like dead files .but money supply isnt going down that much. money velocity is the variable that is imploding. more pavlovian reaction than any true flight to safety.as all the carry trades unwind,the only thing that can go up is the USD and probably the yen
and it will cost you nearly 50bps to protect from credit default, OAS of 2.50% disgusting, going to be a bad decade…
2 year note hit 0.99% yesterday. Never happened ever. And just wait till Peak Oil