The 3 month Treasury bill yield is almost zero. It’s at 0.03%. That’s a stunning sign at how much capital flowed into the safest security in the world. Investors want to be free of default risk, and their willing to accept no interest in exchange.

Forget all the talk worrying about inflation, or rising prices. With this kind of asset implosion, the real risk is deflation or falling prices. The slowing global economy will put additional pressure on companies, especially in Asia, to cut prices in an attempt to maintain sales. Corporate price cutting, in turn, will add to the downward deflationary pressure.