This isn't enough to trigger it. The EU has to federalize and that will be challenged. For now it looks like a step in the right direction. After cuu we won't care about what happens. Once the EU can really joing the printing at will party we should be near the bottom of the deflation and things should take a sharp inflationary turn. It always happens that way. We have some factors that make it worse of course. But for us, we want to see a huge spike in costs. (Sell when the value of copper is a fortune.) How low will things go? One guy says we might see gas at 60 cents a liter but people won't have money to buy. Then the printing will begin. Things will skyrocket just because people are getting sick of debasement and always playing catch up. If this cycle passes in the next 3 months we win big. I can't see gas getting that cheap but it would benefit Canada despite the impact on the Tar Sands.

In the old days we spent money into existence. Today we give it to bank who in turn hord it. None of this gets to me and you. Perhaps a loan for a house but who holds that credit. Certainly none of this is going to disposable incomes because it's credit. But, income is directly linked to prices. When prices come into reach of income people buy. That triggers the inflation rebound. Because there's no increase of income it only serves as a trigger and not a driver. Perhaps you've noticed how prices bounce all over the map these days? It's disruptive pricing designed to fool people. It's a typical grocery store tactic aimed at making it hard for people to keep tabs on what's actually a deal. One thing we notice up here is we are still paying $1.30 a liter. For our American friends that's about $5 a gallon US (3.785L) or $6 for an Imperial gallon (4.55L). It has not changed the entire time of the recession. We are being robbed. Obviously, the Conservatives are in on the price fixing or competition would cause the price to flux even a little bit.

So if this is any indication of the health of our economy it's obvious that energy prices will remain high here no matter what happens elsewhere. This will dampen spending somewhat here but it won't prevent the rest of the world from causing the slinky effect. We also have to consider what happens if money rushes here as a safe haven. Will there be capital restrictions?

At any rate, the next two months should be interesting. I'm looking forward to trading tomorrow. We'll see if the markets clamour for more money and sell hard or if the say "meh" it's buying time, we waited long enough.