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04/25/2011

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Alexander Ač

So... there is no deflation?

Dave Cohen

Outside the housing market, I have looked high and low for The Deflation. I can't find it anywhere! Where did that pesky deflation go?

Of course, I am talking about the cost of things, important things like food. I am not talking about somebody's idea of a theoretical good time -- shrinking of the money supply + credit, causing massive "swelling" of the dollar (as Irving Fisher said) and lower costs for items I might buy.

Somebody wake me up when The Deflation gets here.

sharonsj

I thought that low interest rate were purposely engineered so that more people and organizations would "invest" in the stock market. If putting your savings in a bank account gets you 1% interest, then the enticement of a 10% or 20% return on stocks and bonds sounds great--until you find out that those stocks and bonds (and derivatives, and credit default swaps, etc.) are a ponzi scheme.

The country is being gamed and we're paying the price. Too bad the government won't even admit to the current inflation. (Then perhaps I'd get a bit more Social Security money to pay my bills and to eat.)

Loveandlight

And if interest rates were raised, say four times higher to a mere one percent, instead of Ross Perot's "giant sucking sound", you would get a giant crashing and shattering sound, namely of the US housing/ real estate market.

[Fred from Youtube]Yay, I just *love* double-binds![/ffy]

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