I am a deflationnist...

[Scataphagos]

Quote from Buzzed:

Exactly. That's why grocery stores always have sales. They sell too much when the prices are higher. In order not to run out of items on the shelf and create a panic, they need to lower sales by lowering their prices.

3

LOL!

 

[Scataphagos]

Quote from DrPepper:

"... I think we agree upon the need to back paper with real assets whether it is a few commodities or a basket of commodities.

We "need" only to hold government's feet to the fire about deficits. If the government adhered to the principles of "spending only what the take in via taxes"... aka BALANCED BUDGET... the currency need not be backed by anything other than the government's taxing authority.

But apparently that will never work... as GOVERNMENT ARE SUCH GREEDY, SELF-SERVING BASTARDS THAT THEY CAN'T BE TRUSTED TO DO THE RIGHT THING!

 

[jueco2005]

Quote from DrPepper:



It's not like gold and silver can be created out of thin air. It requires a lot of work to get just a little, so the amount in circulation grows very slowly. Gold and silver are commodities and I would have no problem with a bascket (sic-consider taking spelling 101) of commodities being used instead of just gold and silver to back up a paper currency. I think we agree upon the need to back paper with real assets whether it is a few commodities or a basket of commodities.

We agree then.

My idea is neither for inflation or deflation. But to have the value of a currency to be determined by market forces.

Such a thing is better achieved by having a basket of sound assets to back the value of mentioned currency.

 

[Scataphagos]

Quote from jueco2005:

"... My idea is neither for inflation or deflation.

If the government spends ONLY what it takes-in via taxes, there will be "financial stability" overall... neither inflation nor deflation.

That being the case, where does the problem lie and what is the solution?

(Hint... the $USD has lost betwen 95-99% of its value, depending upon the reference, since the creation of the Federal Reserve in 1918).

 

[Scataphagos]

Quote from MKTrader:

Spoken like a brainwashed shill...

Bernanke & co. have to make deflation look like a 3-headed monster--even though it's not.

Correctamundo!!

Bernanke and the government decry deflation only because it makes THEM (and the Federal government's deficit spending) look bad.... and they expect the naive American public to buy their swill and spew.

 

[Kassz007]

Quote from Buzzed:

WRONG. If you know the house is going to go up in value, will you go into debt to buy one? Yes.

Fast forward to today and you have massive housing deflation.

Deflation always wins. You cannot fight it.

With cheaper housing, people can afford to work for less and still keep a house over their heads.

Unemployment is high. The economy is demanding workers to take a pay cut.

Renters need to compensate for this loss of income by raising rent.

Eventually, the cost of renting will be higher than the cost of taking a loss via buying that house.

In the end, it all equals out. A deflationary spiral is exactly the cure this economy needs to get things back on track.

In an inflationary environment, you have EVERY reason to buy a house, in a deflationary environment, you have EVERY reason NOT to buy a house. Housing is one of the biggest reasons deflation is bad, I'm not sure why you're trying to use it as an argument FOR deflation...


You think it's that easy? Workers will just say "Sure! We'll take a pay cut, and everything will be fine." Not a chance. Unions for one would never let it happen. The result? LAYOFFS. Businesses making less money, and laying off workers. Nobody hiring new workers. As I said, let a deflationary spiral take hold and watch unemployment skyrocket.

 

[jueco2005]

Quote from Scataphagos:

If the government spends ONLY what it takes-in via taxes, there will be "financial stability" overall... neither inflation nor deflation.

That being the case, where does the problem lie and what is the solution?

(Hint... the $USD has lost betwen 95-99% of its value, depending upon the reference, since the creation of the Federal Reserve in 1918).

The federal/state budgets are not related to inflation or deflation.

It is acceptable to say that the govt finances deficits trough inflation by creating money to balance the budget.

But in principle, its is our definition of money, banks, and how much of it we need that really defines our financial system.

 

[Scataphagos]

Quote from jueco2005:

The federal/state budgets are not related to inflation or deflation.

It is acceptable to say that the govt finances deficits trough inflation by creating money to balance the budget.

But in principle, its is our definition of money, banks, and how much of it we need that really defines our financial system.

The amount of money we "need" is the amount to accommodate the increase in the population... about 1-2% per year. All of the rest is "inflationary confiscation of citizen wealth by the government"...

 

[Scataphagos]

Quote from jueco2005:

The federal/state budgets are not related to inflation or deflation.

It is acceptable to say that the govt finances deficits trough inflation by creating money to balance the budget.

But in principle, its is our definition of money, banks, and how much of it we need that really defines our financial system.

Re-read this. Soooo discombobulated and stupid, THAT'S IT! NOT LISTENING TO ANY MORE OF YOUR RIDICULOUS SPEW.

What happendd to you? Fall down a flight of stairs and scramble your brain?

ON IGNORE!

 

[jueco2005]

Quote from Scataphagos:

The amount of money we "need" is the amount to accommodate the increase in the population... about 1-2% per year. All of the rest is "inflationary confiscation of citizen wealth by the government"...

Of course not. You are brainwashed by mainstream economics/Keynesianism. .