Which should people Fear more: Inflation or Deflation?

**TidalWave** · 05-16-2009, 04:32 PM

worse? prices going down.
it means theres less margins overall and will just end in failure of everything.

**d-null** · 05-16-2009, 04:33 PM

Originally posted by $5 submissions

They're both bad, okay? But if it came down to it, which is WORSE, in your opinion: Prices going down (Deflation) vs. Prices going up (Inflation)?

probably depends on your situation, someone with alot of real estate mortgaged might not mind inflation as much as they'd mind deflation

**$5 submissions** · 05-16-2009, 04:39 PM

Originally posted by d-null

probably depends on your situation, someone with alot of real estate mortgaged might not mind inflation as much as they'd mind deflation

Same dynamics with gold. Harder to hedge against deflation with assets. Actually, it pushes people out of assets--dump then wait for the price to bottom then buy.

**AdultSoftwareSolutions** · 05-16-2009, 04:51 PM

Depends on what you are invested in. If you own a lot of real estate deflation is bad. If you have a day job, deflation is good. If you own precious metals or commodity futures inflation is good. If you own a lot of paper assets such as stocks inflation is bad.

**$5 submissions** · 05-16-2009, 05:21 PM

Originally posted by AdultSoftwareSolutions

If you have a day job, deflation is good.

To some extent until your company has to downsize or automate so they can lower prices even more to remain competitive in a deflationary market.

**The Heron** · 05-16-2009, 07:59 PM

We have nothing to fear but fear itself.
Pretty much a wasted discussion, you going to invent a way to control the monetary system?

**pocketkangaroo** · 05-16-2009, 08:12 PM

Deflation. Once the Fed drops rates to 0%, there isn't much that can be done to stop it. At least with inflation the Fed can raise interest rates to whatever they need to in order to hedge it. I feel like you have more control over inflation than deflation though both are bad.

**u-Bob** · 05-17-2009, 03:57 AM

the only thing people should fear is the fact that a small group of people control the money supply and can cause inflation and deflation 'at will'.

Originally posted by Nathan Rothschild

I care not what puppet is placed on the throne of England to rule the Empire, ...
The man that controls Britain's money supply controls the British Empire.
And I control the money supply.

**anna28s** · 05-17-2009, 04:08 AM

Inflation makes people poor

**IllTestYourGirls** · 05-17-2009, 04:25 AM

Originally posted by pocketkangaroo

Deflation. Once the Fed drops rates to 0%, there isn't much that can be done to stop it. At least with inflation the Fed can raise interest rates to whatever they need to in order to hedge it. I feel like you have more control over inflation than deflation though both are bad.

The Fed was created to stop the boom bust cycle, to stop recessions and to stop depressions. Historically the fed has done nothing to stop any of that. They have only redistributed wealth through their manipulation of the money supply. Mainly by creating inflation to destroy poor peoples wealth and transfer it to the rich.

Originally posted by u-Bob

the only thing people should fear is the fact that a small group of people control the money supply and can cause inflation and deflation 'at will'.

**seeandsee** · 05-17-2009, 04:34 AM

Inflation

**$5 submissions** · 05-17-2009, 07:37 AM

Originally posted by anna28s

Inflation makes people poor

So does the job losses and lost production and shrinking economy created by deflation... right?

**anna28s** · 05-17-2009, 08:01 AM

Originally posted by $5 submissions

So does the job losses and lost production and shrinking economy created by deflation... right?

Deflation don`t create uneployment and don`t shrink economy - its Keynesian myth

**slapass** · 05-17-2009, 08:28 AM

In the US, we all have so much debt that deflation is a killer. Inflation is acutally helpful to the leveraged investor.

Which should people Fear more: Inflation or Deflation?

Which should people Fear more: Inflation or Deflation?

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