Should Investor worry about Inflation or Deflation? »
Posted By WikiMap 5 months, 4 weeks ago in NewsWhat’s going on with our economy? First, we have to acknowledge that we are in a secular bear market. We may be here a long time. Are we starting disinflationary spiral, a growth phase or approaching that dreaded inflation scenario?
Read Full Story at mychannelnews.info »
948 Views Share Story 18 Comments Report
Who Also Submitted:
RSS Join the Discussion
+ Add CommentComments So Far: 18 (view all)
-
gamezireComment removed: Hard Banned
-
100%
calitennflo5 months, 4 weeks ago
This comment is below the standard viewing threshold View It »
When one is enabled to perform...performance rises...when onme is enabled to produce...one is productive...this type of philosophy applies here too...as when one uses methods, such as a true democracy provides...a leaf has worth...and the single pieces of stone have worth...when before...they cost too much to seperate and use.
Reply
Money must always be removed before forming an opinion. -
Neutral
tadair9195 months, 4 weeks ago
This comment is below the standard viewing threshold View It »
this author almost gets it.
Reply
deflation is not a drop in prices. the drop in prices is a symptom of deflation. (many things can cause prices to drop.)
deflation is a decrease in the money supply which causes prices to drop because the relative scarcity of the money makes it more valuable.
(by contrast, inflation is the increase in the money supply which creates the illusion of rising prices because the relative influx of the money makes the money less valuable.)
also, so long as companies remain efficient, this is not a bad thing because they are benefiting from the drop in prices, too.
in short. fear inflation, runaway inflation, and hyper-inflation. welcome deflation, except the unnatural kind governed by the fed.)
read hayak.-
100%
beavith15 months, 4 weeks ago
This comment is below the standard viewing threshold View It »
tad.
Reply
deflation is perniciously destructive. its the one thing that Keynes got right. the paradox of thrift -something that we are living through now- shows up as job losses and a sharp decline in economic output that can spiral downward out of control.
inflation steals the ability to save. deflation destroys economies. look at Japan in the 1990s.
-
-
Neutral
ssfahrer5 months, 4 weeks ago
This comment is below the standard viewing threshold View It »
Actually, you have to look at a classic economic formula:
Reply
MV= PQ. M= the money supply; V= the Velocity of Money; P= the Price Level at any point in time and Q= the Quantity of Goods produced at said point.
What we have now is VERY low velocity of money (under 1, let's say). Any increase in M will have LITTLE EFFECT on either P or Q since V is so low. If V should rise, THEN and ONLY THEN can we even THINK about 'inflation' as being a potential problem. As long as unemployment is high (and it will be for quite a while), I don't think inflation will be a problem-- but neither will deflation, since there are still > 300 million Americans that have demands on the economy, but they won't demand as much, so no inflation. But as long as there are more births than deaths, deflation is not that great a danger.... -
100%
Natureboy5 months, 4 weeks ago
This comment is below the standard viewing threshold View It »
What the investor should worry about is that the economy is petroleum driven, and by various experts calculations we are coming up on peak oil or have recently hit that point.
Reply
Invest in arable land. Buy hoes and shovels. Hand tools will be enjoying a renaissance.
The economy has taken a dump, no doubt about it. But the energy picture means that the economy may regain its feet briefly, but will fall again, and worse.
Food will be taking a more prominent role in the economy. Energy efficient construction and home improvements will be important. The local will regain its ascendency over the global. -
Neutral
lloydm655 months, 4 weeks ago
This comment is below the standard viewing threshold View It »
The president,and treasury know we we will have to have at least ten percent,unindexed inflation by next year in order to keep the deficit below two trillion dollars.I believe he has been banking on it from get go.I seen this happen under Carter,it's not pretty.You work hard you get a ten percent raise,iflation eats up the raise,and then cometh the tax man to tax the raise inflation ate up.
Reply -
Neutral
Icantwait5 months, 4 weeks ago
This comment is below the standard viewing threshold View It »
My Fellow Americans: Well,well,well, All the Economist are out with their text book concepts. Nice going boys but they only work in a Capitalist system. Unfortunately, Obama is a Socialist and with his policies and the ones he is now springing on our country failure is inevitable. High unemployment and getting worse, less tax money, Government paying all the bills from less tax money, more tax money demand for the unemployed, bills coming due, no money to pay them, Government prints more but the Buck loses value, businesses can't sell their goods have to raise prices. can't sell their goods have to lay employees off, thus lose money and eventually go out of business, more demand on the government for money, raise taxes, more unemployment compensation needed. Foreign countries want the money they lent us. Can't keep a strong defense, can't provide Government controlled health care, which is a very poor program, more sick people, more famine, more crime, more government control of your lives, less freedom. More Obama, more trouble. Hey! you imbeciles voted for the Dictator. Gooooooood Lucccccck. The Real American
Reply
More News
LA Times
A story of shock, chaos and bravery unfolds in Ft. Hood shooting
Healthcare bill clears parliamentary hurdle in House
Afghanistan government accuses foreign officials of interfering
Unemployment rate rises above 10% ; Obama signs jobless benefit extension
Jason Rodriguez : Shooting at downtown Orlando office building leaves 5 hurt, 1 dead
Add a Comment
Sign In With Your Propeller Account
Please keep your comments relevant to this story.
To create a live link, simply type the URL (including http://) or email address and we will make it a live link for you. You can put up to 3 URLs in your comments. Line breaks and paragraphs are automatically converted — no need to use <p> or <br /> tags.