Some experts think the U.S. economy will recover if left to its own devices, however, without targeted tax cuts or other governmental maneuvers. “Natural market forces will reverse the slump if allowed to proceed uninhibited,” Lu told TheDC. Read more
“The deficit problem is a much bigger problem for China than for the U.S.,” WB Advisors managing director Albert Lu told TheDC. Read more: https://dailycaller.com/2012/02/10/us-china-trade-deficit-now-largest-in-world-histor“y/#ixzz1mOMuIWXF
Time to panic?
The good news is that deflation is not the most likely outcome of the current economic environment.
That deflation worries are hanging over the economy at all is the bad news.
“When an economy experiences deflation, the purchasing strength of its monetary unit, the dollar in our case, increases, meaning the prices of all goods — including labor — experience downward pressure,” says Albert Lu, principal at The Woodlands Bullion Company in The Woodlands, Texas.