This is where a deflationary cycle begins, and this is what the Fed has been trying to stave off with its QE initiatives.
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What’s wrong with deflation ,, inflation helps the banks and the gov’t but kills the savers and responsible people ,, deflation helps me and you ... why parrot the FED line about deflation? I for one would like to go to the grocery store and pay “2000” prices for my groceries...and maybe a new car..
http://www.zerohedge.com/news/2014-04-19/everything-we-are-told-about-deflation-lie
I for one would like to go to the grocery store and pay 2000 prices for my groceries...and maybe a new car.
Who is going to produce that new car for you? Do you think the people working for that company are going to work for "2000" wages?
And how about existing mortgages? Would you have any interest in paying off a 2014 -- or even a "2000" -- mortgage if the home was appraised at what it was worth in 1980?