Until we get rid of the Federal Reserve we will all have to work long and harder just to get by. We all ready work the first three months of the year for free. All our wages for the fisrt three months go to income taxes. Just think how much better of everyone would be if you got to keep all the money you worked for. The workers in the late fourtis who have been paying into SS for the entrie working career will get nothing.
The same remark applies to you! PS: "In all honestly" should be "In all honesty". Did you get infected by W. and his problems with words?
I don't like the fact that they are spending and not balancing the budget either. But, if you look at the website, Bush doubled the debt in 8 years and everyone gave him a pass. Deflation is not a great thing now, even with the lower prices. This is because the cost of debt and servicing debt increases during deflation. If debt levels were at a normal level, like around 1980, deflation would not be so bad. However now, if you hold the value of debt constant but reduce or maintain the number of dollars circulating, the cost of debt relative to available money increases. Probably any gain from lower prices would be more than offset by the increase in what it takes to service debt. Also, people would spend less on non-essentials because $100 today would be worth $110 in a year with 10% deflation.
You must be one of those al gore global warming morons. It's lights out alright. Adios amigo. Your on ignor since you can't post without calling people names.
If you cannot state that the previous administration did such bad work, then you are clealry an idiot, more likely from state that votes W. no matter what.
Pabst, could you elaborate on why deflation can be a good thing? It may be good for indivduals, but I think it would be disastrous for the U.S. as a whole. Since the U.S. is a debtor nation, my assumption is that the government would see deflation as a huge problem because it would make it harder for debtors to pay off their debt.
Hey, Buffet must be reading my posts. This is what I said earlier. Well, the part about inflation, anyway. Don't see the amount of inflation needed to reduce deficits (as a % of GDP) as a good thing. Remember when Carter needed Volker to crank rates up to bring down inflation at the expense of the expansion? http://www.elitetrader.com/vb/showthread.php?threadid=162757
Krispy.., you are right, of course. Deflation is bad for debtors especially since interest rates can't go below zero. Poor debtors are also more likely to default in deflation and credit (which expands the economy) grinds to a halt. It is generally thought that inflation of 2 to 5 percent is the ideal situation with interest rates slightly above or below inflation and growth a bit higher. Easier said than done though.