(10-22-12) The Global Zombie Economy is upon us.

As a trader, you always look at the fly in the ointment, as it were, and that is -- what are the chances that the global central banks can successfully institute a Grey Skies Policy?

And what is the problem that is frustrating their efforts to institute a necessary economic policy?

It is the action of governments, who are not allowing the people, wearing their hats as consumers, to enjoy the falling prices of Blue Widgets (or any other product) that planetary deflation is causing.

Why? Because, as Economics 101 tells us, the governments are filling the falling price gap with ever higher tax levies...

This accomplishes two things for government. It raises fresh tax revenue and it gets a tax increase from the people because it isn't actually labeled a tax increase.

It also makes economic numbers of nation-states look better because the shills on CNBC try to say -- if deflation is the real problem, why aren't global retail sales falling?

Last week the retail sales numbers were up 1% -- which is a decent number.