Comments on: Deflation: Position Yourself To Reduce Potential Negative Effects http://www.bloggernews.net/118865 High-quality English language analysis and editorial writing on the news. Fri, 17 Feb 2012 12:45:56 +0000 http://wordpress.org/?v=2.3.3 By: Jim http://www.bloggernews.net/118865#comment-1463421 Jim Fri, 11 Dec 2009 18:19:31 +0000 http://www.bloggernews.net/118865#comment-1463421 It is important to understand deflation, and why it occurs, but it is currently very unlikely because the biggest debtor has ability to print the currency in which the debt is owed. So while we may see a deflationary cycle globally, in terms of U.S. Currency we will NEVER see a deflationary cycle ... at least not until Uncle Sam is a net saver instead of a net borrower ... and definitely not with liberals in office ... they'll print money and buy goods (or give the money away) just to keep things humming along. It is important to understand deflation, and why it occurs, but it is currently very unlikely because the biggest debtor has ability to print the currency in which the debt is owed. So while we may see a deflationary cycle globally, in terms of U.S. Currency we will NEVER see a deflationary cycle … at least not until Uncle Sam is a net saver instead of a net borrower … and definitely not with liberals in office … they’ll print money and buy goods (or give the money away) just to keep things humming along.

]]> By: St Alphonso http://www.bloggernews.net/118865#comment-833377 St Alphonso Fri, 19 Dec 2008 11:47:45 +0000 http://www.bloggernews.net/118865#comment-833377 Folks are spending all their energy telling us how it's not deflation, but that's not the truth. It very much is. If it weren't for the fantastic amount of inflationary actions (0% interest, virtual cash going everywhere, two wars) prices would collapse: 1) Housing prices collapsing (not an exaggeration) Huge inventory overhang. 2)Car sales off a cliff (obviously) 3) Unemployment horrible--unemployed tend to spend less, obviously. 4) Commodities speculation in general unwinding 5)Stock wealth has evaporated. 6) Stock dividends also being suspended or reduced. 7) Debt being curtailed reducing potential for demand-pull inflation. 8) Population aging--people get a little wiser as they get older and don't waste quite as much money generally. 9) Those that do get jobs don't earn as much, and with all this debt and inevitable tax increases they will likely have less disposable income. 10) I'm not an economist--there are a lot more reasons for deflation and only one for inflation--government. History shows that the markets eventually overwhelm government intervention. We can't fix a problem if we keep denying it. Folks are spending all their energy telling us how it’s not deflation, but that’s not the truth. It very much is. If it weren’t for the fantastic amount of inflationary actions (0% interest, virtual cash going everywhere, two wars) prices would collapse:

1) Housing prices collapsing (not an exaggeration) Huge inventory overhang.
2)Car sales off a cliff (obviously)
3) Unemployment horrible–unemployed tend to spend less, obviously.
4) Commodities speculation in general unwinding
5)Stock wealth has evaporated.
6) Stock dividends also being suspended or reduced.
7) Debt being curtailed reducing potential for demand-pull inflation.
8) Population aging–people get a little wiser as they get older and don’t waste quite as much money generally.
9) Those that do get jobs don’t earn as much, and with all this debt and inevitable tax increases they will likely have less disposable income.
10) I’m not an economist–there are a lot more reasons for deflation and only one for inflation–government. History shows that the markets eventually overwhelm government intervention. We can’t fix a problem if we keep denying it.

]]> By: David Bakody http://www.bloggernews.net/118865#comment-825553 David Bakody Mon, 15 Dec 2008 19:59:02 +0000 http://www.bloggernews.net/118865#comment-825553 Thank, strange I got here because I answered a blogger who was being smart about his lower mortgage rate and bragging just how wonderful this was.... and telling everyone how great Bush and our Harper were to allow it. I told him fine but read up on deflation... I understood my words..but decided further enlightenment would not hurt... thank you again. Thank, strange I got here because I answered a blogger who was being smart about his lower mortgage rate and bragging just how wonderful this was…. and telling everyone how great Bush and our Harper were to allow it. I told him fine but read up on deflation… I understood my words..but decided further enlightenment would not hurt… thank you again.

]]> By: Jason http://www.bloggernews.net/118865#comment-814633 Jason Wed, 10 Dec 2008 18:11:46 +0000 http://www.bloggernews.net/118865#comment-814633 Federal Reserve Chairman Ben Bernanke and his colleagues are clearly more concerned with the risk of a deflationary spiral than with inflation right now. But deflation can be scary. Buyers assume everything will be cheaper in the future, so they wait for bargains. If no one is buying, factories curb production. Workers lose their jobs and shops close. Federal Reserve Chairman Ben Bernanke and his colleagues are clearly more concerned with the risk of a deflationary spiral than with inflation right now. But deflation can be scary. Buyers assume everything will be cheaper in the future, so they wait for bargains. If no one is buying, factories curb production. Workers lose their jobs and shops close.

]]> By: tj @ smartblogtips http://www.bloggernews.net/118865#comment-806344 tj @ smartblogtips Fri, 05 Dec 2008 05:15:27 +0000 http://www.bloggernews.net/118865#comment-806344 very nice article. i was looking or something to learn about deflation and how it will affect us. We know a lot about inflation but so little about deflation. This was very helpful. regards Thinkjayant very nice article.

i was looking or something to learn about deflation and how it will affect us. We know a lot about inflation but so little about deflation. This was very helpful.

regards
Thinkjayant

]]>