Well, deflation "is" bad. But that is only when it's caused from the natural demand destruction from the business cycle. Deflation from risk liquidation or from deflating bubbles is not the same thing. In my opinion, that is a good thing. After suffering through the bubble and the recession, all the middle class has to look forward to is the deflation, this is their ONLY chance at recovery as it allows them to buy assets on the cheap and the FED has ROBBED them of this opportunity. Instead this privilege is given only to the rich. As John Pierpont "J. P." Morgan famously said, when there is blood on the street, you buy. Well, that blood usually belongs to the poor and middle class. However, natural deflation is bad. It's like a black hole. You can get near it, but you don't want to get sucked in because once you do, you can't escape. However, since the advent of credit in this country, I don't think we have seen "real" deflation the way exists in other cultures. We are just too greedy and consume too much to ever stop buying. In order to have real deflation you have to be capable of having a positive savings rate. Ours has been negative for decades although during the credit crisis it actually broke the zero line for the first time in God knows how long. Compare that to Japan where the historical savings rate has been steady at 15%. THIS is why you are seeing REAL deflation in Japan and not here.
Unless politicos and bankers CREATE inflation, there is virtually no risk of "natural" deflation... especially in America. Even Japan wouldn't have had* a deflation problem without having created a big inflation first. *Looks like they're now trying to inflate their way out of their deflation with money-printing running amok.
That's not exactly true. In a world where there is absolutely NO credit this would likely be true. But as long as we have credit cycles, we are going naturally borrow more then we make in the short term which means in the future, we will have to spend less to pay back those debts. This is part of the natural credit cycle as there is nothing wrong with that. But I agree that the "dangerous" deflation should never happen under normal cycles. It can only happen as a byproduct of the massive credit bubbles where debts get so large and leveraged that the unraveling of those debts creates what looks like demand destruction when in reality, once those debts are liquidated, the normal business cycle will resume.
Which is just your way of a chicken shit dodge. Along with your ridiculous insistence I meet you on the other side of the country. Again, who do you think you're fooling?
Anyone see Ricter, Piezoe? Where are all these pro-minimim wage hike advocates? Did they just cut and run when facts were thrown on the table?
You know I'm not bluffing. Vegas is easier for me to get to than Atlanta and they can hold bets in Vegas. Oh I forgot you're chicken and there won't be any bets. Go fuckyourselves Lucrum you're all talk from wanting to murder women and children on the border to calling everyone out, you're nothing.
I know you ARE bluffing. It not easier for me dumb ass, it's nearly twice as far away. "They" can hold bets anywhere, it don't need to be Vegas moron. No bets but there certainly could be a meeting. But then I've already said that repeatedly. You know I'll show up, it's the reason you're trying to make it as difficult as possible. I'm calling you out chicken shit roofer. You said you were coming to ATL. When?
Who creates "excessive credit"? Who fosters "excessive spending"? Bankers and Government! If they didn't do that, any "inflation-deflation" cycles we would have would be natural corrections to minor imbalances. Is that what we have... "minor imbalances"?