Quote: (02-01-2013 09:07 PM)T and A Man Wrote:
Quote: (02-01-2013 04:06 PM)Samseau Wrote:
Who cares how long it takes?
People without jobs.
People without jobs suffer even more hardcore in inflationary periods, because not only can they not get jobs but they also will find that their paychecks can't buy them shit.
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The end result: people buy.
OK... but the question is how long does the stand-off play out?
What lasts longer, the time it takes to buy houses again... or how long you can live without food that you can't afford due to no work.
The poorest countries in the world are the ones that have high inflation.
There isn't a country with deflation that doesn't eventually recover. Keep reading for proof:
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And it's not like prices fall forever... eventually a floor is hit and people begin to buy again.
Yep, eventually... but the time to reach 'eventually' has been prolonged in the world by internetion by government designed to protect the rich.
During credit bubble, bond holders are meant to lose their shirt, because of poor lending policies.
Here we have seen banks protected so bonds don't become valueless... and then the same people who f*cked up by poor lending, are now meant to be the same mob who will lead us back to prosperity by now making right decisions.
That's because you had a credit bubble where the banks were bailed out "in order to prevent massive deflation".
Bailouts = Massive government intervention (which is bad).
Remember Iceland? Iceland went bankrupt in 2008. They decided that bailouts for banks was retarded. They defaulted on all their loans and the value of the Icelandic Krona went to shit. People were unemployed for a few years.
But after a brief dip, how are they doing today?
http://www.zerohedge.com/news/2013-01-26...ning-davos
http://www.zerohedge.com/news/2013-01-26...ning-davos
Their debts are being repaid well ahead of schedule.
Unemployment is half of what it was in 2008.
GDP growth has been higher than almost any other developed nation.
Fitch ratings have been restored to investor grade.
Thus, deflation is a natural consequence of not bailing out the rich. It helps the poor in the long run, the only thing they need is some welfare to survive until the economy sorts itself out again.
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