Garth Turner: Debt Meets Inflation Part 1 - Sept. 25

[markleerose]

Sounds like a lot of Keynesian bunk to me.

[waldentree]

Prepare for inflation by reducing debt?? Am I hearing things?

[waldentree]

The US government is not "giving money away". If it is, tell me where, so I can get some and buy gold with it before the hyperinflation comes.

[martintheguitarist]

What a bunch of nonsense. Why is deflation bad and inflation is less bad? Maybe if you are a debtor, certainly not if you are a creditor. Who stops buying because of prices going down? People would just stop eating because it will be cheaper next week? How can it be that there were record sales of flatscreen TVs and cellphones for the past 10 years despite prices falling? Apparently the world is full of experts who know nothing what they talk about.

[partyhouse88]

Good talk however I don't agree with his premise that if prices fall, consumers will hold off on purchases. What about items such as the latest Ipod, 3d TV, clothes... consumers aren't going to wait 6 monthes after it comes out to save 10-25%. By then the technology would be obsolete. What about food or gasoline? People can't stop eating or driving for monthes. We need a light dose of this deflation to improve productivity in businesses, tighten margins and bring asset prices back to earth.

[capncrunch93able]

thanks for posting.