Dragon Tales

Diane Court: "Nobody thinks it will work, do they?"
Lloyd Dobler: "No. You've just described every great success story."
--Say Anything

Minyanville professor Kevin Depew offers another data point that supports the aforementioned hypothesis of 'near term deflation followed by significant inflation.'

Pep appears to sense that the influence of the deflationary phase may begin to lose its steam by Q4 this year. While certainly plausible, I wonder whether it'll take more time to kill of debt to the point where we're ready for a truly secular shift in things. The Japan situation comes to mind.

Of course, I may just be feeding Morton's Demon.