Deflation is the monster under Bernake's bed

[Chotabear]

Why is deflation seen as so bad ? We never get it. All we get is inflation with its high prices. Surely deflation, its opposite, is a good thing bringing all figures back into proportion. Deflation, I wish, bring it on !!!

[CoffeeHead31]

Over a year later and I still haven't seen anything to make me believe deflation is not a real threat.

[TheMinistryOfDefense]

Rape any future Goy Grandchildren today Bernake?

[jeangrey65]

"Excellent vid!"

[delerium2k]

great vids captain

[mariasman100]

Right, there is no deflation. This is a deleveraging event, a panic selling that is a function of uncertainty. Selling dollar-denominated assets is the same as buying dollars. Increasing the demand for anything will drive up its price. In this case, the "price" for money is what it will buy. Bernanke has only one tool... the printing press. He's determined to drive up the velocity of money at any cost. With a swollen money base, this means massive price inflation in our future.

[therealcaptobvious]

some say "deflation", it should be worded "price correction". The Cost of Living Index should be the first clue. It's far over 100, it would be better than using credit to stimulate the economy.

[mariasman100]

I don't understand what you mean by "it would be better than using credit to stimulate the economy." What is "it"?

[therealcaptobvious]

since Americans have experienced a decline in real wages in the last 10 years, a price correction, such lower price for fuel for our cars would enable people to stretch their money further which will help the economy. People use credit because they can't stretch their money far enough. I prefer a correction vs. credit to stimulate spending.

[mariasman100]

The decline in real wages began more than 30 years ago, actually. A lower price for fuel allows people to "stretch their money further", but it does not follow that fuel prices must fall simply because it helps people to meet their expenditures. People use credit because they have become accustomed to living beyond their means, pure and simple. They can't stretch their money far enough because government at all levels is consuming the balance of resources, and financing it through inflation.

[therealcaptobvious]

When I say that real wages declined, thirty years ago real wages declined due to inflation. In the last 10 years, real wages declined even further and then some because of offshoring and that deficit. Which shouldn't even happen because today's workforce is more educated and trained than they were 30 years ago.

Don't tell me people "live beyond their means" when the COST OF LIVING INDEX is well above 100. Gimme a break.

[mariasman100]

You agree that real wages have declined saying also that people "can't stretch their money far enough". You state also that "people use credit" to make up the difference. This is, by definition, living beyond their means. Pause to think on it. It seems to me that you're letting the money veil get the best of you here. Don't focus on dollars, but the underlying resources. Real wages are lower today than they were 30 years ago because the U.S. economy is on net balance less productive today.

[MACKATTACK1970]

You are correct in your analysis.

The video you posted in response to 'MoneyTalks" has it all backward.

INFLATION IS AROUND THE CORNER - OUR PRINTING PRESSES ARE AT FULL SPEED AHEAD AND OUR FIAT MONEY IS NOT BACKED BY ANYTHING BUT AN I.O.U. FROM A DEBTOR NATION!

[djsherin]

Thanks for posting.