Comments on: Who’s afraid of deflation?

By: ForeverSPb

ForeverSPb — Mon, 31 Aug 2009 01:29:49 +0000

You say deflation – but have you paid your real estate taxes lately, or may be you happen to pay admission to mary-go-round in a local park?

In my experience, everything that is not goods – taxes, admissions, surcharges, co-payments go up.

Here, in tri-state, rents are not falling either.

How does this not constitute inflation – if about 80% of my expenses are not goods, I can not understand.
May be Mr Swann will explain?

By: The Bell

The Bell — Tue, 25 Aug 2009 15:24:05 +0000

Let’s call this song exactly what it is:

a bizarre war economy with upwardly-mobile consumer prices while titanic public subsidy stimulates boardroom looting of zombie corporations amidst plummeting wage levels and mass unemployment at ground level, equals…

neo-conflation!

By: Hour glass

Hour glass — Tue, 25 Aug 2009 10:37:54 +0000

…if it is both or neither, maybe stagflation ?

By: CBFE

CBFE — Tue, 25 Aug 2009 09:10:50 +0000

Debt, unemployment and an oversupply of housing have devastated consumer demand. At the same time, quantitative easing, the budget deficit and a continued decline in international confidence in the dollar are creating inflationary pressures. Which will win out? I don’t know. Either way, the U.S. stands to lose.

Many Americans might welcome deflation. I too look forward to housing prices that are more in line with reality. The people in charge of our economy should have allowed the overheated economy to rectify itself on its own by allowing housing and stock prices to decline. Instead they attempted to reinflate the bubble and now a collapse in prices could lead to complete devastation for the American economy.

Either way, I think we can all agree that the U.S. is pretty far from entering any kind of recovery. I’m also pretty angry about Obama renominating Bernanke.

What do you think? Whats coming: inflation or deflation? http://cbfe-econ.blogspot.com/2009/08/de flation-danger.html

By: Hour glass

Hour glass — Tue, 25 Aug 2009 06:46:40 +0000

One of the best articles in a LONG time, Real interest rates being Nominal rates less (inflation). Thank you for smoking ! Well done !

By: Garrett Knoche

Garrett Knoche — Tue, 25 Aug 2009 04:50:44 +0000

I do not generally bother with idiot’s posts but Antonio Ivan Easterling got my goat, 31 years Military Service my a$$, No self respecting Vetran would ever refer to themselves as a member of “Global NATO Forces” yes we are part of NATO but no member of the military would refer to themselves as such. The completely nonsensical post that followed his grandiose list of titles was the clincher, no one with that disorganized and delusional a thought process could have ever survive 31 years in the military.

By: wones

wones — Tue, 25 Aug 2009 02:29:43 +0000

PeopleSearches.com

http://www.PeopleSearches.com/

By: Das Ram

Das Ram — Tue, 25 Aug 2009 01:45:35 +0000

Deflation hurts Tax Revenue, little else. For such a long time, we have been warped into believing that the D word is catastrophic, only because without Artificial Inflation, designed to increase the rolls of the IRS and to Inflate our way out of debt, we have thwarted Market Activity that always does one of or a few in combination: Better, Cheaper, Faster.

No business ever enters a market or even exists by not doing one of those three to capture market share and sales.

Consider the philosophy that we (citizens) are little more than the gasoline in the engine of the Government (and or Powers that Be). Once we are burnt, we are exhausted in the wind while they go on to their next filling station.

Deflation will only take us back down to a level of our Needs. The sooner we exit the Fiat Currency, so we have a Baseline for measuring Units of Labor to Produce Goods and services, we will continue to be held hostage to the White Collar Slavery imposed upon us for nearly a century.

Inflation is a Thief, Deflation is the Tough Love for acting imprudently for too long.

By: NationalDeflationAssociation

NationalDeflationAssociation — Tue, 25 Aug 2009 01:08:58 +0000

Ben Bernanke and his buddies don’t understand or don’t care to understand and admit that monetary manipulations will not bring back demand. We are now experiencing a DEMAND DEFLATION in everything. The sub-prime real estate buyers are not coming back to market, and the credit worthy borrowers are not going to get into debt any time soon to support the speculative bubble blowing any longer. We don’t need to “unfreeze lending” if nobody wants to borrow (while assets are depreciating). Mr. Bernanke somehow believes that he can magically circumvent creating economic product, which is always based on labor and goods it produces, by just hitting a button on his computer to add a few zeros to FED’s account in a coup of counterfeiting. This illegal act does not provide employment to anyone except Mr. Bernanke and does not result in any economic product on the other end of this labor intensive operation. His academic theories, being tested on live human beings, will be proven wrong and disastrous soon enough. The prices will go where they naturally want to go. All FED can do is slow the process of decline, not arrest it – and that will only prolong this recession that has all the underpinnings of becoming another Great Depression.

By: George Christensen

George Christensen — Mon, 24 Aug 2009 23:36:12 +0000

Well Christopher,

All I can say is if your analysis is true, why?
Why would policy makers fear a strengthening U.S. Dollar? For in this global economy, If we’re talking about an increase in the purchasing power of the USD, that’s what we are truly talking about. The USD has fluctuated in value ever since we abolished the gold standard and replaced it with fiat currency. Whatever you may be lad, a historian, you’re not! How ayone could think deflation is remotely possible is baffling to me. Lets go back to the basics here. Supply and Demand. Let’s say there are oh, 800 million USD floating around and then the Federal Reserve Prints up another couple trillion dollars. Hmm. So you think tripling the money supply will actually increase the value of the dollar? All it will do is increase the price of USD priced commodities such as oil and gold. I suggest you save yourself a copy of this comment so that you can refer back to it in 10 or 20 years. You might learn something. Here’s something you can do today. Look at a long term chart of the USD and cross reference it with a gold chart. I think you’ll find in gold terms everything is relatively stable. It’s the USD that’s actually in over supply. This results in what is commmonly called inflation. Not deflation. Any signs of deflation that we currently see are simply driven by fear. Blowing inventories out the door because we’re afraid we won’t meet fixed costs otherwise, resulting in reduced profit margins, and all the negatives that result from that. The bold will snap up the undervalued and will be the next bunch of USD billionaires. Personally, I see nothing but opportunity in the wreckage.