when home price drops, inflation can not happen
Indeed it can, will, and is happening! 'It', of course, inflation, that is, may depend entirely upon your definition of 'it'.
For the sake of definition, I define inflation as the cost of goods (and services) across a broad landscape of those goods and services, and, applied to the population 'as a whole'. This, again, may need defintion, the population as a whole, that is.
Generally speaking, I define the population as a whole, to be weighted heavily towards the least afluent among us, (which as you might guess, is recently (and swiftly) a growing percentage of the populace.
Taken in sum, if, that majority, is in the aggregate, experiencing increases in the costs of those goods and services, which I would and do propose they are, and / or, they are recieving less, or 'less value', in those sasme goods and services, which again I would propse they (we) are, which in effect equates to an increase in those same goods and services, then inflation does indeed exist, even in what appears to be a deflationary market.
When coupled with, and especially in the face of, significant decreases in 'percieved and actual wealth', as in market values of holdings, and marketable 'securities (what a misnomer!) (in our persent case, to include virtually every asset class, real estate, bonds, muni's, stocks, homes, autos, etc), I would again propose that actual inflation is far greater than is presently accounted for, (hey, waht else is new!).
The irony, of course, is that on the face of it, as the OP wonders, it would seem that inflation should be abating, when in fact it is not only not abating, but actually incresing on a relative basis, even as we experience deflation, of our holdings.
It's a cruel world.
I expect 'it' to get worse, before it gets better, particualarly for the less well-prepared. Those fortunate in possessing large or ample stores of wealth, will of course, stand to benefit in actual and relative terms, as they are and will be in position to capitalize on improving values and opportunities, at the expense of their less fortunate countrymen.
The ability to transition those great values to realized gains, in my opinion, will over time depend upon being able to (once again) lift up the population as a whole, which in my view also depends upon this nation effectively transitioning swiftly, and decidedly, towards energy independence, and away from stripping vast oceans of wealth and blindly sending them to eagerly-awaiting foreign powers.
I think we can, and will do it!
Indeed it can, will, and is happening! 'It', of course, inflation, that is, may depend entirely upon your definition of 'it'.
For the sake of definition, I define inflation as the cost of goods (and services) across a broad landscape of those goods and services, and, applied to the population 'as a whole'. This, again, may need defintion, the population as a whole, that is.
Generally speaking, I define the population as a whole, to be weighted heavily towards the least afluent among us, (which as you might guess, is recently (and swiftly) a growing percentage of the populace.
Taken in sum, if, that majority, is in the aggregate, experiencing increases in the costs of those goods and services, which I would and do propose they are, and / or, they are recieving less, or 'less value', in those sasme goods and services, which again I would propse they (we) are, which in effect equates to an increase in those same goods and services, then inflation does indeed exist, even in what appears to be a deflationary market.
When coupled with, and especially in the face of, significant decreases in 'percieved and actual wealth', as in market values of holdings, and marketable 'securities (what a misnomer!) (in our persent case, to include virtually every asset class, real estate, bonds, muni's, stocks, homes, autos, etc), I would again propose that actual inflation is far greater than is presently accounted for, (hey, waht else is new!).
The irony, of course, is that on the face of it, as the OP wonders, it would seem that inflation should be abating, when in fact it is not only not abating, but actually incresing on a relative basis, even as we experience deflation, of our holdings.
It's a cruel world.
I expect 'it' to get worse, before it gets better, particualarly for the less well-prepared. Those fortunate in possessing large or ample stores of wealth, will of course, stand to benefit in actual and relative terms, as they are and will be in position to capitalize on improving values and opportunities, at the expense of their less fortunate countrymen.
The ability to transition those great values to realized gains, in my opinion, will over time depend upon being able to (once again) lift up the population as a whole, which in my view also depends upon this nation effectively transitioning swiftly, and decidedly, towards energy independence, and away from stripping vast oceans of wealth and blindly sending them to eagerly-awaiting foreign powers.
I think we can, and will do it!
