Tuesday, December 2, 2014

Mount Gaseous Plentifulness

The following chart shows the 1000-trading-day average of the natural gas spot price.

Click to enlarge.

Ever get the feeling that our monetary leaders are running a grand experiment and have no idea how it will all turn out? Yeah, me too.

Perhaps Switzerland knows.

August 14, 2014
Swiss Deflate the Deflation Theory

For more than four years, consumer prices in Switzerland have risen at an annual pace well below 1 percent. In 2012 and 2013, the country even experienced deflation. Yet its economy has grown at a steady pace, and is expected to expand by 2 percent this year. The unemployment rate is a low 3.2 percent.

We should be so lucky. Perhaps they should too. Over the long-term, their real GDP growth is slowing relentlessly (as is quite evident when using the log scale).

Wow! I managed to make it through this deflationary post without mentioning Japan. Well, almost.

Source Data:
EIA: Natural Gas Spot and Futures Prices (NYMEX)


Anonymous said...

I'd guess income distribution influences inflation
but our policies seem to be to limit distribution to
the very top.

Rob Dawg said...

"Saving the banks one bubble at a time since 1913"

Stagflationary Mark said...


If we could entice the super rich to build even larger mansions for themselves then, maybe, just maybe, we could get the price of natural gas higher. I suspect that the mansions would need to be a lot larger though. Homeless people in cardboard boxes don't use any natural gas so therefore wouldn't be pulling their fair share. Sigh.


Stagflationary Mark said...

Rob Dawg,

Nice, lol. Sigh.

Mr Slippery said...

Speaking of Japan, here is a long, but very interesting video about the BoJ and the Japanese economy since WW2.

Stagflationary Mark said...

Mr Slippery,

Although the first few minutes had a generally gloomy tone, can I assume that the rest of the video will lift my spirits? You know, from their already high optimistic levels?

In all seriousness, it's now on my list of videos to watch.

Mr Slippery said...

The gloomy tone stays mostly gloomy.

Stagflationary Mark said...

Mr Slippery,

Have no fear. It's only a matter of time before the clown horn takes over again.

That always lifts my spirits! ;)