Inflation or Deflation?

Professor Sidney Winter, Deloitte and Touche Professor of Management , Emeritus at the Wharton School of the University of Pennsylvania, and currently the Michael Crouch Visiting Professor in Innovation and Entrepreneurship at the Australian School of Business on the dangers of inflation / deflation.

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Education

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• UNSW

[thane17]

You all need to start watching Peter Schiff. Deflation is exactly what our country needs to return us to a more sound economic model. The idea that we need people to spend money to get things moving is rediculous. We need people to start producing real goods that can be exported. The only way we can dig out of this recession is to become producers, not consumers. 70% of our economy is based on consumers spending borrowed money. If deflation occurs it will force us to become producers

[Capnwabbit]

Yep. How's that working out?

[jackgoldman1]

Debasement creates confusion. Real US silver coins still exist. They sell for $18 for one dollar. We have already had inflation. The price of gasoline in bank debt notes is $3.50 a gallon. The price in silver coins is $3.50 divided by 18 or 19 cents a gallon in real US silver coins. The Dow in real money is 12,000 divided by 18 equals about $700, same as 1963, no progress. It's all currency debasement. Bankers, brokers, owners, governments win. Tax payers lose. Stop debasement now.

[BarrySlisk]

I don't trust economists who think that inflation is higher prices. Inflation is creating more money which LEADS to higher prices.

[BarrySlisk]

@jaguarclaw

What difference does it make? Money is money. More of it is inflation and causes rising prices.

[orangedac]

This is a load of bullocks.

Deflation is what is needed. Prices of everything needs to fall to affordable levels.

[svenp]

He's right, deflation is a terrible danger now. But a much worse danger are the central planners that think that you can or should avoid it. It's simply not possible, the market will get it's way eventually, only the pain will be much much worse for having tried to avoid and delay it.

[AntiVenomFangX]

@caganb

where is inflation at 20% let alone going up 20% a year? is this in america?

plus you need 3 consecutive years of about 25% for it to be considered hyperinfation, but im still curious where this is going on.

[caganb]

@AntiVenomFangX  20% a year. I'm seeing that much already

[AntiVenomFangX]

@caganb

at what percentage would you say constitute hyperinflation.