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I don't know why people are talking as if deflation is a real thing when there's a worldwide property bubble going on and property price is a a very real aspect

by ArchD 12y ago

I don't know why people are talking as if deflation is a real thing when there's a worldwide property bubble going on and property price is a a very real aspect of the cost of day-to-day living. One must question the CPI metrics used.

danieltillett 12y ago
Follow the money. Who benefits from talking up deflation and who loses. This will answer your question.
adventured 12y ago
It's a fraudulent concern meant to enable more printing. One of the many psychological toys the Fed & Co. use, just like they regularly threaten to raise interest rates (for years at this point) to buy more time on holding down the bubbles they've created without having to actually do anything. The reason so many people are afraid of deflation, is they're from the Keynesian school of economics. They've been brainwashed for two generations to think inflation is how you grow an economy. No coincidence, the Keynesian experiment has been a global disaster of epic proportions, leading to the greatest accumulation of debt in world history; and locally, a 40 year stagnation in the American standard of living, perpetually high real unemployment, increased poverty, and increased inequality (because the rich can shield themselves from inflation, the poor cannot). Every country in history that has ever attempted to implement a Keynesian inflation based economy, has failed, with the result being a disaster. Such examples include the US, Japan, much of Europe and lately China has signed on to the debt / stimulus / inflation party. Japan is a famous, fake deflation example. They haven't suffered a penny of deflation in 30 years (an inflation based asset bubble imploding, is not deflation); if Japan had suffered decades of deflation, their wages and prices wouldn't be among the highest in the world.
- Nursie 12y ago
  Yup. Total disasters. Higher standard of living than any humans in history, but Japan, Europe and the USA are somehow failed economies and total disaster zones. What colour is the sky on your planet?
  - jazzyk 12y ago
    I think the poster above is talking about the trends, not the absolute level of wealth. The standard of living in the US has been stagnant (even declining, for the lower-middle class) since 2000. Japan has been stagnant since the real-estate bubble burst in the 80s.

by ArchD 12y ago

danieltillett 12y ago

Follow the money. Who benefits from talking up deflation and who loses. This will answer your question.

adventured 12y ago

It's a fraudulent concern meant to enable more printing. One of the many psychological toys the Fed & Co. use, just like they regularly threaten to raise interest rates (for years at this point) to buy more time on holding down the bubbles they've created without having to actually do anything. The reason so many people are afraid of deflation, is they're from the Keynesian school of economics. They've been brainwashed for two generations to think inflation is how you grow an economy. No coincidence, the Keynesian experiment has been a global disaster of epic proportions, leading to the greatest accumulation of debt in world history; and locally, a 40 year stagnation in the American standard of living, perpetually high real unemployment, increased poverty, and increased inequality (because the rich can shield themselves from inflation, the poor cannot). Every country in history that has ever attempted to implement a Keynesian inflation based economy, has failed, with the result being a disaster. Such examples include the US, Japan, much of Europe and lately China has signed on to the debt / stimulus / inflation party. Japan is a famous, fake deflation example. They haven't suffered a penny of deflation in 30 years (an inflation based asset bubble imploding, is not deflation); if Japan had suffered decades of deflation, their wages and prices wouldn't be among the highest in the world.

Nursie 12y ago
Yup. Total disasters. Higher standard of living than any humans in history, but Japan, Europe and the USA are somehow failed economies and total disaster zones. What colour is the sky on your planet?
- jazzyk 12y ago
  I think the poster above is talking about the trends, not the absolute level of wealth. The standard of living in the US has been stagnant (even declining, for the lower-middle class) since 2000. Japan has been stagnant since the real-estate bubble burst in the 80s.