tag:blogger.com,1999:blog-8078379512095504946.post1163160646383524612..comments2024-03-26T06:17:49.527-07:00Comments on Had Enough Therapy?: The Black Swan of DeflationStuart Schneidermanhttp://www.blogger.com/profile/12784043736879991769noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-8078379512095504946.post-28905659220395284102015-01-22T10:24:35.501-08:002015-01-22T10:24:35.501-08:00So asset values are inflated (~2-3% annually), whi...So asset values are inflated (~2-3% annually), while the wealth of new generations is confiscated, including through the accumulation of debt. This assures the need for more "social" policies like Obamacare, progressive "minimum wage", to compensate for these economic distortions. The problem is not only does it cause misalignment, but the effects or consequences are not limited to our society.n.nhttps://www.blogger.com/profile/04252447117532342957noreply@blogger.comtag:blogger.com,1999:blog-8078379512095504946.post-30161695889464769132015-01-22T10:21:59.762-08:002015-01-22T10:21:59.762-08:00This comment has been removed by the author.n.nhttps://www.blogger.com/profile/04252447117532342957noreply@blogger.comtag:blogger.com,1999:blog-8078379512095504946.post-53913904704317551062015-01-22T08:39:28.298-08:002015-01-22T08:39:28.298-08:00Deflation: Does this mean my near-zero interest o...Deflation: Does this mean my near-zero interest on my savings and checking accounts will go negative?Sam L.https://www.blogger.com/profile/00996809377798862214noreply@blogger.comtag:blogger.com,1999:blog-8078379512095504946.post-59798349944521245032015-01-22T07:47:29.833-08:002015-01-22T07:47:29.833-08:00Not everyone agrees with you. See:
http://mises...Not everyone agrees with you. See: <br /><br />http://mises.org/library/deflating-deflation-myth<br />Wm Searsnoreply@blogger.comtag:blogger.com,1999:blog-8078379512095504946.post-31749764696531077142015-01-22T07:42:53.529-08:002015-01-22T07:42:53.529-08:00Yes, I had figured the only way we'd have low ...Yes, I had figured the only way we'd have low oil prices again would only come from another global recession, but this one surprised everyone.<br /><br />High prices in the 70's spurred new production in the 80's (North Sea and Alaska), and sunk prices through the mid 90's.<br /><br />I don't think this fall will last years, but oil producers over their heads in debt won't be able to handle losses for long.<br /><br />Personally if I was the government, I'd look to expanding the strategic oil reserves. <br /><br />If we're going back into a period of see-saw prices, I'm all for the government helping to smooth out the prices by buying low and selling high later. And it'll slow down the oil producer layoffs that are in process right now.<br /><br />Deflation is scary for those who hold debt, just like deflating home values with fixed mortgages. Eventually debt holders would rather default, and that shrinks the "imaginary" money supply.<br /><br />I'm not sure all the tricks that Central banks have to avoid deflation, and lower interest rates are one, but straight out handing out cash hasn't been tried yet. Its hard to imagine how weird things are going to be before this magic fiat money experiment ends.<br /><br />Its really amazing to see the "net household wealth" has risen from 65 trillion to 81 trillion or whatever since the 2008 crash, so that's all fake money that only exists if everyone can sell assets when prices are high, which they won't stay with boomers retiring and trying to sell.<br /><br />It's more fun to read about than imagine all the way these things will affect us. Everyone I know has their heads in the sand. I accept worrying doesn't change anything, but at least greed only looks like prudence. There's no down side for me to paying off while I have income to do it.<br />Ares Olympushttps://www.blogger.com/profile/09726811306826601686noreply@blogger.com