Like the illusion of Wall Street, with its vast and powerful investment banks, now shuttered, China too is an illusion perpetuated by the Globalists that gave us the 15,000 mile Caesar salad, poisoned cat food and lead based paint on babies' pacifiers. Like the illusion that money would come from thin air to always push housing prices higher, China has spent a generation pursuing its illusion. Pursuing an unattainable dream to be like the West, while 6000 years of its carefully shepherded top soil blows into the sea.
Posted: Thu Aug 28, 2008 4:42 pm Post subject: Inflation or Deflation--Best article yet!
Charles Hughes Smith:
"My problem with setting money supply as the defining measure of inflation and deflation is practical. This pronouncement leads to an obsession with measuring money supply rather than with the relative loss or gain of purchasing power"
and:
"In a truly deflationary setting, then my cash buys more next year than it does now. This was the case in the Great Depression. You could buy more food, more shelter, etc. etc. every year. Now that's deflation.
Pardon my skepticism when "deflation" is announced due to shrinking money supply yet prices are rising, i.e. purchasing power is declining, not rising. This makes a mockery of the concepts "deflation" and "inflation" which are a priori measures of price.
Rather than argue about measuring money supply, which I find particularly useless and distracting, let's revert to discussing supply and demand."
Posted: Thu Aug 28, 2008 5:37 pm Post subject: Re: Inflation or Deflation--Best article yet!
Nice, thanks for that. I agree, in the current situation he is correct however in a movement to the extremes I'm afraid he is wrong. _________________ -Dac
Winners never quit and quiters never win, but those that never win and never quit are idiots.
Posted: Fri Aug 29, 2008 11:14 am Post subject: Re: Inflation or Deflation--Best article yet!
From same article:
If a haircut drops in price but your petroleum bill doubles, are you living in an inflationary or deflationary economy? Who cares? The reality is, you spend $500 a month on petroleum (say) and $25 on a haircut (okay, it's a Supercut), then are you wowed by the "deflationary" reduction in your expenses?
Posted: Fri Aug 29, 2008 1:46 pm Post subject: Re: Inflation or Deflation--Best article yet!
and more from the same article:
Quote:
In conclusion: if you live a certain lifestyle, and make certain investments with your savings, then your purchasing power may decline with alarming velocity or remain essentially unchanged, or even increase, regardless of money supply increasing or decreasing.
well no crap captian obvious!
i mean, seriously, that holds true for damn near any economic condition at any time. so, in a way, it's a worthless conclusion.
Posted: Fri Aug 29, 2008 3:46 pm Post subject: Re: Inflation or Deflation--Best article yet!
nobodypanic wrote:
and more from the same article:
Quote:
In conclusion: if you live a certain lifestyle, and make certain investments with your savings, then your purchasing power may decline with alarming velocity or remain essentially unchanged, or even increase, regardless of money supply increasing or decreasing.
well no crap captian obvious!
i mean, seriously, that holds true for damn near any economic condition at any time. so, in a way, it's a worthless conclusion.
Actually not. It didn't hold true for the deflation of the Great Depression, where prices dropped across the board, for starters.
Posted: Sat Aug 30, 2008 12:09 am Post subject: Re: Inflation or Deflation--Best article yet!
threadbear wrote:
nobodypanic wrote:
and more from the same article:
Quote:
In conclusion: if you live a certain lifestyle, and make certain investments with your savings, then your purchasing power may decline with alarming velocity or remain essentially unchanged, or even increase, regardless of money supply increasing or decreasing.
well no crap captian obvious!
i mean, seriously, that holds true for damn near any economic condition at any time. so, in a way, it's a worthless conclusion.
Actually not. It didn't hold true for the deflation of the Great Depression, where prices dropped across the board, for starters.
reread the conclusion. there's absolutely no way it can be wrong for any cricumstance--it's worded that openly.
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