Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: wafflehouse

Wrong. The Great Depression *was* deflationary because home prices and salaries declined in spite of what FDR did.

Nor is inflation easy to create. Japan has been trying each year since 1989 to create inflation. They’ve borrowed and spent more than us.

And Japan has 15% annual deflation right now.


26 posted on 06/22/2009 9:39:40 PM PDT by Southack (Media Bias means that Castro won't be punished for Cuban war crimes against Black Angolans in Africa)
[ Post Reply | Private Reply | To 25 | View Replies ]


To: Southack

did you read my post? i fail to see how any of those three sentences were false. maybe you read too much into it. a depression will feature both deflation and inflation. deflation is the main cure to the problem, while inflation is the government response. ill bet you a hundred bucks that by the time this is over, we will have significant inflation (or dollar devaluation) compared to where we are now.


28 posted on 06/22/2009 9:44:57 PM PDT by wafflehouse (RE-ELECT NO ONE !)
[ Post Reply | Private Reply | To 26 | View Replies ]

To: Southack
Nor is inflation easy to create. Japan has been trying each year since 1989 to create inflation. They’ve borrowed and spent more than us.

Japan was using the pre-global economy model, where a country could simply increased money supply and cause inflation in its respective society. However, in this global environment, the rest of the world didn't could care less if Japan needs inflation. Japan, being an exporting nation, can't get more for their cars, electronics etc. than the rest of the world is willing to pay.

If the were trying to create inflation, they were an island unto themselves in doing so.

Now however, EVERYBODY wants inflation. Europe and America needs it for many reasons, not the least of which being to bring the nominal value of depleted assets up, and the make the real burden of debt less painful. China and Asia want inflation. International bankers want inflation. Politicos want inflation because they fear deflation more.

All the right people want inflation, so it will happen.

31 posted on 06/22/2009 9:59:15 PM PDT by AAABEST (And the light shineth in darkness: and the darkness did not comprehend it)
[ Post Reply | Private Reply | To 26 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson