How do you stop deflation?
- Thread starter peilthetraveler
- Start date
I agree that gold is too finicky to rely on, but right after an oil shock has it's own set of problems since it takes time for the demand destruction it leaves behind to play out.
IMHO, shadowstats CPI feels right even if it isn't perfect.
http://www.shadowstats.com/alternate_data
Oh Man. You're too funny.
It was SARCASM, JPAD.
You know, like when you said "Right prices have to come down relative to wages, makes perfect sense." Thats sarcasm.
As was my response to you.
Seems most folks would rather be "part of the club" and debate esoteric money mechanics that have shit-to-do-with-shit with solving the actual problem.
Just window dressing and signets that imbue the illusion of power and understanding.
At the end of the day, the problem - and solution - are simple.
This is the 4th time you've needed explanation of the obvious, Maxi-Pad.
Colloquial English seems the least of your worries. Although the most embarrassing, to be sure.
Why would the little guy loose his job? Whatâs the unemployment rate in Zimbabwe? Why do we have this notion that unless we print money like crazy the economy will crash? We keep hearing that we need to let businesses get loans so they can by products and pay employees (i.e. print more money). Why canât they pay for that in cash? Sales are down at where I work now, but theyâre still making a profit. They donât need to borrow money to pay me. Itâs true that the little guy might get paid the same or a little less, but all of his expenses and cost of living would go down.
Wages never keep up with inflation. Thatâs how the Man screws you. Companies are reluctant to pay employees more when the cost of livng goes up, but they hardly ever cut wages during deflation. Companies donât want news reports that they are cutting wages, but nobody will care if they donât increase wages during inflationary booms.
There is a negative savings rate because in this so called rich, free country, it is so damn expensive to live. If inflation is 5% a year and wages only go up 2%, youâre getting screwed 3% a year. Multiply that times 30 years of massive inflation, and the average persons real wages are down probably 50%. How much do you expect people to save when their incomes are being eroded? Inflation erodes savings as well, so whatâs the point of saving when a dollar today wonât be worth a dollar tomorrow? Inflation is probably the greatest economic scam ever invented by the Man.