King Kong vs. Godzilla Credit

Bloomberg.com has an interesting article written by John F. Wasik on the economy with a King Kong vs. Godzilla scenario.

The article states:

The fallout that has irradiated highly leveraged Western economies has started a King Kong versus Godzilla battle.

To avoid getting trampled, you will need to finesse your credit options and hedge against inflation.

The monster characterization comes courtesy of Niall Ferguson. Viewed through a lens of history, the Harvard professor and author of “The Ascent of Money” (Penguin, $29.95), sees deflation in the short term followed by inflation.

King Kong, in Ferguson’s parlance, represents the kind of deflation going on now. Economies from Japan to the U.K., in his estimation, will continue to shrink this year. The lone exceptions are China, India and Brazil. Godzilla is the wave of liquidity “pouring like a jet hose from central banks.”

To read the full article, go here.