Janet Travakoli, author of 'Dear Mr. Buffett', makes the following points about deflation:
- Our fundamental financial and economic problems, i.e. overleveraging, lack of transparency, have not been solved.
- Since 2008, capacity utilization has plummeted; businesses have no pricing power; U.S. lost 6.7 million jobs but numbers are underreported; personal income tax receipts are down 21%; corporate tax receipts are down 58%; U.S. deficit will exceed $1.8 trillion; govt. spending is now 185% of tax receipts; 13% of mortgages are seriously delinquent and/or in foreclosure; huge decrease in personal net worth; 15 million mortgages exceed the home value.
- We’re on a massive debt spending spree. Income on all levels is not sufficient to make debt payments.
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