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overtheedge
Member since May 2012
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>Deflation Shock Coming?  - John Rubino - Dollar Collapse
"Moderate inflation can be a boon to consumption as it encourages consumers to buy before prices rise, but economists say falling prices encourage consumers to put off spending and companies to delay investment, both of which act as brakes on growth."

Really?
It has been my observation that consumers buy whenever they can rustle up some more credit.
Did USA consumers delay buying houses while the real estate market was going great guns?
Companies don't delay purchasing because of prices. They delay because of adverse market forecasts.
Inflating the money supply will continue until the economy collapses.
Companies will always buy with cheap dollars if and only if forward sales looks good.
Companies, unlike consumers, understand debt service.

Why is anyone listening to economists? Did they build our economy? What did they create?

Am I the only one that sees a serious disconnect?
This is like that little episode a few years back when the banksters stated they had to retain the jokers that created the CDO mess because they were the only ones that could unwind it. The economists agreed. The real joke was on John and Joan Q. Public. The perps are still employed and the plebs are up to their neck in serious debt.







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3840 days ago
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Beginning of the headline :While the US is celebrating a (supposed) recovery, other big parts of the global financial system are behaving as if some sort of deflationary crash is just around the corner. In Europe, for instance, interest rates are not just declining, they're plunging. From a recent Sober Look blog: The Unprecedented Chase for Yield The major market surprise of 2014 so far has been the extent of investors' appetite for yield in the developed fixed income markets. It has been quite ... Read More
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