Another good Hugh Hendry interview, pertinent parts begin after the Madoff discussion. I agree with Hugh in that inflation is what occured, and now we are seeing the opposite. The DREAM, the central banker HOPE, is to create inflation, but that's simply not what's occuring.
And here are the latest inflation and GDP growth charts from Shadowstats.com to back up what he's saying:
Those charts aren't pointing up. Again, that's the dream, and the central bankers are attempting to rebuild that expectation of inflation but the collapse of credit and the shadow banking system are simply more powerful than all the stimulus the goverment could possibly bring to bear at this juncture. That's because the math of debt is simply too heavy.