If you can believe the Fed data anymore, velocity has been flat for the last 10 years. In fact MZM velocity has been below M2 velocity--a fairly recent development. Also, money multipier is at a record low--the 2 go hand in hand. http://research.stlouisfed.org/fred2/graph/?id=M2V,M1V,MZMV, http://research.stlouisfed.org/fred2/graph/?id=MULT,
Deflation is better than inflation? You need to take a closer look at the true implications of full on deflation. It's certainly not better than inflation. And it even stands as an equal as compared to the ugliness associated with hyperinflation. They're both highly destructive.
in this case i'm good,assuming that dollar not going to fall a lot. in fact it may move up,cause this downgrade may act as an wake up call for idiots in DC and hopefully force them to put their checks and balances in order.
where did you get this stupid ideas? Deflation doesn't prevent people from buying staff All technology is based on deflation you buy more not less eventually
yeah, are people waiting on a sidelines to buy new laptops? they're better and cheaper every month. no, buying like crazy. some factors supporting deflation in the future: 1. electric cars 2. new energy technologies 3. no more spending on Deep Underground Military Bases. few trillions spent on it, really dumb... 4. no more spending on middle east wars. unless people will be so immensly naive to believe in another false flag operation! 5. accumulating wealth from previous generations. youngsters will inherit more and more... just in case of low class americans- they will inherit debt. 6. more 10s of millions of people switching into more effective production/services from Indonesia, China, India, Bangladesh, Brazil. 7. more conscious spending decisions by western consumers. this alone can result in 50-70% less money spent, with the same level of utility or consumer satisfaction.
I tend to agree. Deflation is more of a risk than inflation at this point. I have a business, and I can assure you that there is little appetite for price increases with my customers. As commodities go up (as has recently happened), it will slow down the economy, thereby crushing commodities once again (starting to happen now).
Japanese regime is smarter. Public debt to GDP ratio is 200% External debt to GDP ratio is 50% USA Public debt to GDP ratio is 80%% External debt to GDP ratio is 100%
Um. Not saying we've seen significant inflation (yet), but how in the hell do you figure that 17% over one year is "not much" ?
Wrong! http://www.v3.co.uk/v3-uk/news/1999784/analyst-warns-rising-pc-laptop-prices http://www.pcadvisor.co.uk/news/desktop-pc/3227832/pc-and-laptop-prices-on-the-rise/ http://semiaccurate.com/2011/04/06/notebooks-and-hard-drives-to-increase-in-price/
That is the insidious nature of inflation. The increase in prices in smaller, staple items will tend not to raise eyebrows, but it's the cumulative effect of ALL of those smaller, staple items rising in unison. It goes further than that though. More often than not, we've seen these companies shrink the product rather than raise the price. Sometimes they do both. Same goes for restaurants where they will simply reduce the entree sizes, usually changing the plates to try and mask the changes.