Deflation Monsters...what a joke!

Quote from PohPoh:Equities, bonds, real estate....granted that is a large amount - but watch consumer prices go nowhere but up...
More...
Can you name a period in financial history when worldwide equities and real estate depreciated by large amounts and at the same time consumer prices appreciated by equally large amounts?

Just curious.
 
Quote from PohPoh:

Trump up that deflation fear - it doesn't exist...
$40 crude, $800 gold...and you call that deflation? Is that all you got?
The deleveraging is almost over...we may have another leg down in the crowded, gamed sectors (energies, metals)...but watch consumer prices not come down at all..

ONLY some USD based assets will flounder and fail - Equities, bonds, real estate....granted that is a large amount - but watch consumer prices go nowhere but up...

You think your food will be any cheaper?
You think your gas for your shitty car will be cheaper?
You think it will cost less to heat your home?
Put clothes on your back?
Put your kids through school?
Insure your family?

The deflation monster scared the public in 2002 - it never materialized BECAUSE THERE WAS NO CHANCE OF DEFLATION. Same as now...
More...


Wrong. There was a chance of deflation, but it was stoped with low interest rates. But now we have low interest rates + dried up credit markets. There is a difference.
 
Quote from PohPoh:

The DEMAND comes from the money we print...
You don't need to have growth to have inflation..
Just look at Zimbabwe..
More...

But you do need liquid credit markets.
 
Quote from Landis82:


There is no DEMAND for money when T Bill rates are nearly ZERO.
More...

Well that's just simply not true..
No demand for money?
Trillions of dollars have been begged for and donated...where did that money go?
Into short-term bills...
Why?
That's the mandate...
We give you money - you buy Treasuries...If you don't, then we don't give you money and you die.

It's no different than BW2 - We give the Saudis Dollars for oil and they use those Dollars to buy US Treasuries. In return, we protect them militarily, and let them stay in power.

The difference is that this current collapse will be very temporary and very acute. It can't last..

The long-term effects will be terribly inflationary, and last much longer than 6 months of deleveraging.

The inflationary spiral is only at half-time....
 
T Bills are zero because there is no other place for a large company treasurer or foreign central bank to park temporary cash funds safely.

Previous parking areas now considered too risky:

Auction rate securities
Large "too big to fail" banks
Money Market funds
Commercial paper
Agency paper

If you were a company treasurer where would you put your temporary cash now ?

Jet Blue has 305 million in illiquid auction rate securities. Bet he wishes he had zero percent T Bills now!!!

http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=BCOM&date=20081114&id=9379899
 
...begin_conspiracy_theory...
This isn't about deflation or inflation. This is about the destruction of a form of monetary policy of the world - using the USD as a "reserve currency." The uncertainty in the markets is REALLY about what the hell happens next - after the "USD as reserve currency."
...end_conspiracy_theory...

-gastropod
 
Quote from Landis82:

Remember, the money is not "printed" until a loan is consumated.

People tend to "gloss" over this fact.
More...

Hmm. Wow, that's retarded. Been studying long?
 
Quote from timbo:

Hmm. Wow, that's retarded. Been studying long?
More...

What's so retarted? You think the Fed runs the printing presses and stores all the bills in a vault somewhere waiting to send them out in the mail?

Money isn't created until it's loaned.
 
You must log in or register to reply here.
Back
Top