Fairfax Financial Is Betting On US Dollar Deflation

Fairfax Financial Holdings Ltd (TSE:FFH) (PINK:FRFHF) held its annual meeting for 2013 on April 11 in the company’s home city, Toronto. Prem Watsa, the company’s CEO, made some interesting comments about the future of the world economy, including his thesis that the US is headed for a period of deflation. Since the Federal Reserve began its program of quantitative easing, many analysts have been predicting the economy was likely to enter a period of high inflation. Taking inspiration from the situation in Japan, Watsa actually believes deflation is more likely. According to the CEO, Japan didn’t see deflation until five years after…