Inflation? Not Yet

With all of the hand-wringing about inflation worries in the face of rising public debt, it seems that Nouriel Roubini, the one person who has called this crisis right, is still concerned about deflation. From his site on January 22,

. . . a rally in stocks may end in the second half of the year amid a muted recovery in the world’s largest economies and as deflationary pressures limit gains in corporate earnings.

While much of the talk is about rising interest rates and governments facing higher carrying costs, the action appears to be toward safe positions in public sector debt.

Follow the money!