To: DeaconBenjamin
Inflation is a mythical unicorn seen only briefly by poverty-stricken retirees.
The *danger* is the opposite: deflation from a slowing money supply and a destruction of credit availability.
2 posted on
07/10/2012 9:31:55 PM PDT by
Southack
(Media Bias means that Castro won't be punished for Cuban war crimes against Black Angolans in Africa)
To: Southack
what we have here is
biflation, a combination of commodity inflation secondary to wage stagnation and easy monetary policy coupled with asset deflation secondary to a collapsed housing market and a stagnant labor market. thrown into this is a further reduction of individual discretionary capital secondary to rising tax burdens which are a result of falling tax revenues due to the aforementioned unemployment.
14 posted on
07/10/2012 10:22:20 PM PDT by
RC one
(this space intentionally left blank)
To: Southack
I think falling gas prices as well as falling oil market prices do represent deflation. That is, a reduction in the number of dollars chasing this resource that, though relatively plentiful, does have a real limit on the rate it can be supplied. This is just the opposite of the expectation of soaring prices that many, including myself, expected when we were moving up fast through $4.40 a gallon.
16 posted on
07/10/2012 10:51:24 PM PDT by
dr_lew
To: Southack
Destruction of wealth (perceived & real) can happen with either inflation or deflation.
It depends on what is considered wealth. Money? Real Property? Business Property? Gold?
The real disaster is when you have both. Is that possible? Yes, inflation followed by a total deflationary collapse.
Do I think that will happen? No human knows.
This is NOT a business as usual situation. We are in uncharted waters. And it is a global problem.
God bless the United States of America.
25 posted on
07/11/2012 5:19:57 AM PDT by
Texas Fossil
(Government, even in its best state is but a necessary evil; in its worst state an intolerable one)
To: Southack
A danger to banks and to debtors.
27 posted on
07/11/2012 5:31:31 AM PDT by
DeaconBenjamin
(A trillion here, a trillion there, soon you're NOT talking real money)
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