Ruffer Investment: Japan’s Three arrows of deflation

Central banks have been printing money in enormous volume since the 2008 crisis, but markets are suddenly behaving as if they are in disinflationary environment. Henry Maxey, CEO of the London-based investment firm Ruffer, explained in a recent review how the uncoordinated financial policies of the U.S., Japan, and China have created a strong disinflation against a background of reflation, creating the potential for a meltdown.

Initial signs of disinflation

Money is being added to the global market at an astounding rate—the Federal Reserve and the Bank of Japan alone are printing the...