Quote:
Originally Posted by wig
I would say almost 30 years, hence the Volker comment.
|
My mistake
Quote:
|
I view deflation as simply the decrease in the price level of goods and services.
|
There are 2 different ways to view it, that's one way. The problem with that way is that it is very black and white, and doesn't take the middle ground(disinflation) into consideration.
Quote:
|
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.
|
Read carefully what I wrote. I didn't ever state that it started with Obama, I said it became crazy with Obama.
Quote:
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.
|
You should be looking at it from the "real" perspective, not nominal.
Quote:
|
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.
|
The scapegoat is usually the FED, whoever lets the fed run things, and the printing press.
Quote:
|
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?
|
Because while Bush fucked up, Obama managed to create a new level of fail within 2 years.
Quote:
|
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.
|
I suppose that's one way to look at it then.