Comments on: Bernanke vs. History: Our Economic Outlook http://newledger.com/2009/07/our-incoming-deflation/ The New Ledger on News, Politics, and Market issues of the day. Welcome to the Know. Sun, 14 Mar 2010 19:20:29 -0400 http://wordpress.org/?v=2.8.6 hourly 1 By: pollyanna9999999999999 http://newledger.com/2009/07/our-incoming-deflation/comment-page-1/#comment-461 pollyanna9999999999999 Sun, 19 Jul 2009 15:55:12 +0000 http://newledger.com/?p=14187#comment-461 The demographics of deflation are all around us, if we but could see them. The previous administration had a net job loss over its 8 year reign. As a nation we are older, poorer and saddled with massive debt. This doesn't seem to be a good base from which to launch an inflationary rocket, the only wind that can raise this might ship of hope for the Fed is Peak Oil and the huge price increases it will create for all products, farmed, shipped or produced by man and machine. <br>Unless I'm missing some amazing facts, we are destined for a decade of depression, interleaved with bouts of stagflation as oil prices make a damp fuse of any spark of recovery. The demographics of deflation are all around us, if we but could see them. The previous administration had a net job loss over its 8 year reign. As a nation we are older, poorer and saddled with massive debt. This doesn't seem to be a good base from which to launch an inflationary rocket, the only wind that can raise this might ship of hope for the Fed is Peak Oil and the huge price increases it will create for all products, farmed, shipped or produced by man and machine.
Unless I'm missing some amazing facts, we are destined for a decade of depression, interleaved with bouts of stagflation as oil prices make a damp fuse of any spark of recovery.

]]> By: JimmyNashville http://newledger.com/2009/07/our-incoming-deflation/comment-page-1/#comment-423 JimmyNashville Tue, 14 Jul 2009 15:26:55 +0000 http://newledger.com/?p=14187#comment-423 The dollar has to have tracked down with deflation. Otherwise how could you double the money supply without suffering huge inflation. Since the value of the dollar tracked down with the value of goods no one noticed; so we didn’t do the normal deflation game of perpetually waiting for a better buy and killing the economy in the process. <br><br>Winner? The US Government (and hopefully the taxpayers but I’m not holding my breath) assuming all that money they printed to buy interest in the banks ever shows a return. It was a necessary and, in retrospect, brilliant economic move that staved off an economy-wrecking deflation cycle. <br><br>The problem however is that the world is voting no-confidence in an undisciplined and business un-friendly US government now by not wanting to buy or hold US debt. These are not necessarily related incidents except that the promise of electing a hard-left populist pressured the US financial system to breakage as everyone started screaming ‘sell’ in the run-up to the election. Now that it’s evident our president wasn’t just buying votes with his populist rhetoric and intends to act on his ridiculous populist promises; plus our leftist congress is giving him a blank check; now we've got to brace for round two. <br><br>Why is there no recovery or inflation yet, even with all the spending? We're in hibernation waiting for the adults to be in charge again. The dollar has to have tracked down with deflation. Otherwise how could you double the money supply without suffering huge inflation. Since the value of the dollar tracked down with the value of goods no one noticed; so we didn’t do the normal deflation game of perpetually waiting for a better buy and killing the economy in the process.

Winner? The US Government (and hopefully the taxpayers but I’m not holding my breath) assuming all that money they printed to buy interest in the banks ever shows a return. It was a necessary and, in retrospect, brilliant economic move that staved off an economy-wrecking deflation cycle.

The problem however is that the world is voting no-confidence in an undisciplined and business un-friendly US government now by not wanting to buy or hold US debt. These are not necessarily related incidents except that the promise of electing a hard-left populist pressured the US financial system to breakage as everyone started screaming ‘sell’ in the run-up to the election. Now that it’s evident our president wasn’t just buying votes with his populist rhetoric and intends to act on his ridiculous populist promises; plus our leftist congress is giving him a blank check; now we've got to brace for round two.

Why is there no recovery or inflation yet, even with all the spending? We're in hibernation waiting for the adults to be in charge again.

]]> By: brteacherguy http://newledger.com/2009/07/our-incoming-deflation/comment-page-1/#comment-422 brteacherguy Tue, 14 Jul 2009 13:56:46 +0000 http://newledger.com/?p=14187#comment-422 We don't have a cash economy anymore. The enormous amount of money that we have printed is still dwarfed by the massive losses in stocks and real estate, which means that people still have less money to spend, which leads to deflation. We don't have a cash economy anymore. The enormous amount of money that we have printed is still dwarfed by the massive losses in stocks and real estate, which means that people still have less money to spend, which leads to deflation.

]]> By: darwinxavior http://newledger.com/2009/07/our-incoming-deflation/comment-page-1/#comment-421 darwinxavior Tue, 14 Jul 2009 09:06:25 +0000 http://newledger.com/?p=14187#comment-421 Deflation? Yes, the more money we print the more it will buy. That makes perfect sense. Deflation? Yes, the more money we print the more it will buy. That makes perfect sense.

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