Inflation versus deflation: What’s the bigger problem?

Unlike the U.S. right now, China’s not experiencing inflation. Data suggests that they’re actually going through “deflation” — a slow decline of market prices.

As a world power, how might China’s deflation issue affect the U.S. economy?

On today’s episode of The Banyan Edge Podcast, Ian King weighs in on the issue, explaining why he thinks deflation is the hardest problem for an economy and a central bank to contend with.

How can China and the U.S. solve their respective economic dilemmas?

How does new automation technology (like artificial intelligence) affect the growth and the creative destruction of markets?

And why is an automated elevator like the current writer and actors’ SAG-AFTRA strike … and what does it mean for the earnings of media companies like Netflix?

Find out more on today’s episode…

 

(Or read a transcript.)

 

🔥Hot Topics in Today’s Podcast:

  • The reasons behind China’s “deflationary” problem, and the difference between deflation and inflation. [2:00]
  • Why Ian thinks deflation is a more difficult problem to solve than inflation. [4:05]
  • New tech innovations are often considered deflationary. Could the U.S. be heading in the same direction as China? What are the long-term impacts of AI and robotics automation on economic productivity? [7:30]
  • Why the invention of the automated elevator is like the role AI is playing in the SAG-AFTRA strike. [11:30]
  • Ian’s pressing question for me, considering this summer’s movie hype: Oppenheimer or Barbie? [20:40]
  • Falling prices don’t mean falling profits. There’s still money to be made, and the power of AI prediction can help you beat the market with this AI investing tool. [21:10]
  • Before AI, there was Mr. Henry. Ian tells a story about his colleague, during his Wall Street days, who developed his own algorithm to profit 95% of the time on trading days. [25:10]

And if you have any other comments or questions about using AI in your trading strategy, please let us know at BanyanEdge@BanyanHill.com!

Regards,Charles Sizemore's SignatureCharles SizemoreChief Editor, The Banyan Edge