Capacity Quote by Gary Shilling

“Despite the recent conviction of many that we're headed back to inflation, I think deflation remains the more likely prospect. You've just got too much excess capacity in the world.” quote by Gary Shilling — Download Open image

“Despite the recent conviction of many that we're headed back to inflation, I think deflation remains the more likely prospect. You've just got too much excess capacity in the world.”

Gary Shilling

About This Quote

The speaker argues that global overcapacity will drive prices down, making deflation more probable than inflation despite prevailing expectations.

In simple terms: Excess capacity leads to falling prices.

Key Takeaway

Overcapacity can cause deflation.

Themes

economics inflation deflation global supply market cycles

Mood

cautious analytical

Type

observation forecast

When to use this quote

policy planning
investment strategy
corporate budgeting
central bank analysis

Key Concepts

capacity utilization price dynamics macroeconomic forecasting

Practical Applications

risk assessment
price projection

Questions to Reflect On

How does excess capacity affect price trends?
What indicators would signal a shift to inflation?

A Different Perspective

Some analysts contend that demand shocks and monetary policy could sustain inflation despite capacity concerns.

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Capacity Conviction Customer Deflation Deflation Remains Despite Excess Faith Headed Inflation Inflation Inflation Think Remains Think Deflation Thinking Too much World

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