Deflationary consumer attitudes: Beds made of hay are latest hotel craze in Europe.

Ultimately deflation is rooted in consumer attitudes toward taking on more debt for speculative and consumption purposes. When the proverbial consumer finally reaches the point when he is no longer capable of taking on more debt, an anti-deflationary mind set becomes entrenched and no Central Bank in the world with all its stimulative programs can kick start spending and encourage businesses and individuals to take on more debt. It is not the levels of debt that are catastrophic and lead to its deflation, but it is the inability or unwillingness of debtors to take on more debt is what spells doom for the finance “industry” and the rest of so called economy, which in reality is just a consumption mirage based on fiat money that supports inordinate levels of debt. The point of catastrophe has been reached and we are now gleefully deflating. Deflation can take many forms, such as walking away from your negative equity house, cutting your credit card debt, not being able to get a loan from a bank, or from booking a room in a Hay Hotel. This is a sign of times and only confirms the deflationary trend that, hopefully, will take a very firm hold and straighten this world economy for good.

Deflation is here and now and everywhere.

If one were to listen to the policy makers and news media, one might think that deflation may still be averted and has not yet arrived. But if one reads the official economic statistics from around the world one will see that deflationary spiral has already arrived and is beginning its whirlwind motions in earnest.

German Consumer Prices Post First Annual Decline in 22 Years.

Just a month ago the ECB officials were confidently BSing everyone that there was not threat of deflation in Eurozone while the credit was collapsing all around them and the CPI was edging lower. Here we are in July and CPI is now drops at fastest pace in Germany, the biggest Eurozone economy. When will ECB admit the truth?