Get Ready for Massive Deflation Spiral

Quote from EMRGLOBAL:

Deflation will be good for my Business.

It will be good for Consumer who is making money and working.

Things will be cheaper, et all.

Those who are poor and on the verge of loosing their jobs..It will be Hell.

But 80% of Americans are working and that will be good for the over all economy, far better than INFLATION.
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Deflation is better than inflation? You need to take a closer look at the true implications of full on deflation. It's certainly not better than inflation. And it even stands as an equal as compared to the ugliness associated with hyperinflation. They're both highly destructive.
 
Quote from Debaser82:

Keep all your money in cash for the next 10 years and see where it will get you.
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in this case i'm good,assuming that dollar not going to fall a lot. in fact it may move up,cause this downgrade may act as an wake up call for idiots in DC and hopefully force them to put their checks and balances in order.
 
Quote from trendy:

You are a complete, economic, idiot. If deflation hits this country, millions more people are going to be out of work. Why? Because consumers, for example, are not going to buy goods because they are going to be cheaper next month and the month after that, and so on. So, if the consumer is forestalling making discretionary purchases, retailers won't need salespeople, manufacturers won't need laborers, distributors won't be ordering goods, and so on. Investors/risk takers are going to sit on the sidelines. Where do you think the roots of the Great Depression came from? Why do you think Bernanke is so dead set against allowing deflation to get a toehold in this country.
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where did you get this stupid ideas? Deflation doesn't prevent people from buying staff
All technology is based on deflation
you buy more not less eventually
 
yeah, are people waiting on a sidelines to buy new laptops? they're better and cheaper every month. no, buying like crazy.

some factors supporting deflation in the future:

1. electric cars
2. new energy technologies
3. no more spending on Deep Underground Military Bases. few trillions spent on it, really dumb...

4. no more spending on middle east wars. unless people will be so immensly naive to believe in another false flag operation!

5. accumulating wealth from previous generations. youngsters will inherit more and more... just in case of low class americans- they will inherit debt.

6. more 10s of millions of people switching into more effective production/services from Indonesia, China, India, Bangladesh, Brazil.

7. more conscious spending decisions by western consumers. this alone can result in 50-70% less money spent, with the same level of utility or consumer satisfaction.
 
I tend to agree. Deflation is more of a risk than inflation at this point. I have a business, and I can assure you that there is little appetite for price increases with my customers. As commodities go up (as has recently happened), it will slow down the economy, thereby crushing commodities once again (starting to happen now).
 
Japanese regime is smarter.
Public debt to GDP ratio is 200%
External debt to GDP ratio is 50%

USA
Public debt to GDP ratio is 80%%
External debt to GDP ratio is 100%
 
Quote from darwin666:

price of milk is only 2.35/gall. not much increase. was 1.99 last year..
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Um. Not saying we've seen significant inflation (yet), but how in the hell do you figure that 17% over one year is "not much" ?
 
Quote from LodeRunner:

Um. Not saying we've seen significant inflation (yet), but how in the hell do you figure that 17% over one year is "not much" ?
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That is the insidious nature of inflation. The increase in prices in smaller, staple items will tend not to raise eyebrows, but it's the cumulative effect of ALL of those smaller, staple items rising in unison.

It goes further than that though. More often than not, we've seen these companies shrink the product rather than raise the price. Sometimes they do both. Same goes for restaurants where they will simply reduce the entree sizes, usually changing the plates to try and mask the changes.
 
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