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China Slides Into Deflation, What Happens Next? | Round Up

Inflection Point

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The Alligator Jaws Between Stocks and Long Bonds

The alligator jaws between stocks and long bonds are about as wide as they have ever been. Long rates rising because of the treasury problems is going to increase the demands on entitlements. And quite honestly, it's very deflationary because old people buy bonds. It's just going to be a drag on productivity, a drag on economic activity.

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