Quote:
Originally Posted by The Demon
I'm pretty sure we've had disinflation on and off for the past 10 years.
|
I would say almost 30 years, hence the Volker comment.
Quote:
|
It depends on what you view deflation as. I view it as negative interest rates and a contraction of the money supply. The concept of quantitative easing contradicts that concept of deflation.
|
I view deflation as simply the decrease in the price level of goods and services.
Quote:
|
Actually, I think the banks ARE lending money but the consumers are neither borrowing nor spending. And it's not working because of the massive dollar debasement that has been plaguing this country since Obama became President, mostly because of the abuse of the printing press.
|
The banks asses are puckered up beyond belief. They are not lending -- especially compared the the recent past.
I don't know where you come up with the dollar debasement starting when Obama became president stuff. I think that is just your strong political ideology run amok. I used to think you were just trolling, but maybe you really believe it.
The fact is the dollar index was at 125 in June 2001. It collapsed to 74 by March of 2008 (it is now 81.39/dxu10). Gold was under $300 in 2000 and got as high as $1075 in 2008 (it is now 1199/gcz10).
The DJIA peaked in October 2007 at 14,198. By the end of 2008, it was already down 50%. The beginning of the bailouts were already started. The housing bubble had already burst.
I'm not looking for a scapegoat to explain the devaluation of the dollar or slide in equities or home prices or whatever that occurred during the last decade. I just want to be on the right side of the markets.
But, if I was wanting to place blame, why would I point the finger at Obama and not equally (or more so) at Bush given the above chronology?
Quote:
|
I think the tea party is screaming for deregulation, not necessary deflationary measures.
|
Of course they are not screaming for deflationary measures. They are, however, inadvertently promoting certain actions that are deflationary in the short run. These are the austerity measures I cited as an example.