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MONETARY TECTONICS: Here Are 50 Slides Detailing The War Between Inflation And Deflation

Jan 10, 2014, 02:21 IST

Incrementum

"Financial markets have become highly dependent on central bank policies," argue Incrementum's Ronald-Peter Stoeferle & Mark J. Valek.

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"We sincerely believe that grasping the consequences of the interplay between monetary inflation and deflation is crucial for prudent investors these days."

That's why Incrementum put together a 50-slide presentation called Monetary Tectonics, illustrating the "tug of war between inflation and deflation."

Stoeferle and Valek illustrate how these two forces act like the tectonic plates under the earth's surface, colliding in constant reciprocal pressure against one another.

So what's the endgame?

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"The unintended consequences of these monetary interventions will result in increasing volatility, potentially further disinflationary/deflationary phases and eventually (highly) inflationary phases," they conclude.

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