"Deflation...is a reversal of the process of inflation."
"Ice is a loss of pricing power and a world where prices are as likely to go down as up. Ice is an erosion of profits. Ice is excess capacity. Ice is developing countries with low-cost factories and huge new labor forces. Ice is creative price destruction from technology. Bursting stock market bubbles cause Ice...Ice is also about competitive devaluations, as countries try to export their unemployment and lack of growth."
"US corporate profit growth has benefitted tremendously over the past few decades from changes that have now been exhausted. Since 1980, a span of over 30 years, all of these benefits helped corporate profits grow by all of 6.9% per year."
"The problem is that making the transition from one environment to the other can be very disruptive and painful for the companies that are structured for the previous one."
"The inflation-adjusted real return on cash is rising and cannot be taxed. The country's standard of living in real terms remains high. I visited Japan for maybe the 20th time last June, and you get no sense that this is a gray country suffering through a 20-year depression like the US in the 1930s. Tokyo is alive and vibrant."