Stealing our Deflation

[shallow_explorer]

Succinct and to the point summary:

"If you listen to the top central bankers of the world talk for long enough you will come away with the impression that central banks are attempting to give us “price inflation”, as if rising prices were beneficial. However, nobody wants to pay more for stuff. In fact, rational people prefer to pay less, not more. Therefore, when central banks claim to be giving us “price inflation” what they are really doing is stealing the “price deflation” from which we would otherwise benefit."

http://biiwii.com/wordpress/2015/11/27/stealing-deflation/

 

[Ensoniq]

Do we really want deflation?

It is ravaging on debtors whether individuals or governments. If you've already made your bones I guess it's okay; falling prices, increasing value of currency, etc. However for the people working for a living their wages fall and demand drops leading to layoffs.

I'd argue that both inflation and deflation are bad, just for different segments of the economy. We'd be better off with stable non manipulated currency and no central bank.

This articles also ties in why government wants to ban cash...

http://www.economist.com/blogs/economist-explains/2015/01/economist-explains-4

 

[Carl]

Do we really want deflation?

It is ravaging on debtors whether individuals or governments. If you've already made your bones I guess it's okay; falling prices, increasing value of currency, etc. However for the people working for a living their wages fall and demand drops leading to layoffs.

How do you figure? Why would demand drop, why would wages fall? If anything, deflation in prices would lead to even greater demand, profits would soar and and production would boom. Everyone's money goes further, buys more.

Oh, we're not talking about actual money, are we, we're talking about bankster credit that's being passed off as being "our money". Yep, deflation would kill the fuck out of them.

 

[Ensoniq]

Yes. I'm talking about bankster credit "money"

If a company is selling widgets for $100 before deflation maybe they can only sell for $70 or some number you pick after a deflationary period. If they were on a 25% margin they would lose money in the new environment

So maybe their raw material dropped some because of the same deflation but what happens to wages in this scenario. They have to be lowered or else there is no point producing, therefore layoff and wage reductions are the trend

If someone already had made their money thus environment is desirable. For those paycheck to paycheck or in debt this is a disasterous set of conditions.

Just my opinion and analysis. I think we're going to find out one way or the other.

 

[FunnyMoney]

Gold and silver were supposed to be money not paper products. That was in the constitution and the founders understood the whole inflation/deflation cycle pretty well:

Thomas Jefferson, if I remember correctly:

...if the American people ever allow private banks to control the issue of currency, by inflation then by deflation, their children will wake up homeless on the land that their fathers conquered...