Posted on 10/02/2011 4:05:19 PM PDT by blam
deflation bump
When will we get the next stimulus?
Before the end of the year?
Is the stimulus 'jig' up and time for us to 'take our medicine.'?
Down, down down?
supplysideforum predicted deflation for a while now
And, what does deflation mean to us on a personal, household level? What should we expect to see? Anything we can/should do now?
The main trend since 2008 has been highly deflationary as debt which can’t get repaid must get written off and leaves the money supply. But governments have been adding inflationary stimulus to the economy, to try to keep it all propped up. What is happening now is that the stimulus from QE2 is ending, so the deflationary headwinds are taking over.
Deflation?
How is that possible?
With all the extra money being pumped into the economy via QE I, QE II and now soon-to-be-announced, QE III, we shall be AFLOAT in Monopoly money.
Or will the Fed call it all back in, and never allow it into circulation?
Where’s my cheese? Who moved it?
Not by the hair of a politicians chinny, chin, chin!
Deflation in salary, and assets like houses, cars, etc). In other words things that you receive or own.
Inflation in Gas, food, energy, things that you pay for.
It’s a two-fer!
You can thank Ben Bernanke, and Obama for reappointing the guy who said there was no housing bubble in 2007.
But we're in a depression where no one has pricing power anymore, and that means the money created by pumping is never deployed effectively. That's why we still see deflation. This is why the Fed has no interest in ending the depression but is keeping it going. If it ended, we'd see dollar collapse and hyperinflation.
Deflationary Depression in America: The Double Dip Economic Recession
Deflation in salary, and assets like houses, cars, etc). In other words things that you receive or own.
Inflation in Gas, food, energy, things that you pay for.
And again, what is the best thing to do that is possible to do with the average household.
Oh Nooooossss!
Quick, sell all your gold and silver before it becomes worthless!
Wheat,Corn,Rice,Pork, and Poultry continue to trend up
Pray every day.
That is what I see.
Deflationary Depression In America: The Double Dip Economic Recession
Both skeered me pretty good way back when they were first printed. But, then the economy seemed to get better and better and their impact on me lessened.
Now, with the 'success' of obamanomics, it looks like it's time to re-read them both and prepare for the worst.
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