From Gene Endicott, a Memphis gas-station mechanic, who bought tires in February at $139 apiece for his Dodge Caravan:
When I saw what tires were selling for, I jumped on it.
The quote comes from a long Wall Street Journal article, “Glut Of Chinese Goods Pinches Global Economy,” which cites the mammoth glut of tires on world markets as an example of the gluts that plague many other industries. SLL said back in December that oil was not going to be an anomoly, but rather a harbinger (“Oil Ushers In the Depression,” SLL, 12/01/14) and this article provides ample support for that assertion. Debt contractions are deflationary. Global debt is so large relative to the underlying economy, and debt service is already such a toll, that deflation is beginning before debt starts contracting in earnest. When it does, watch out below.
