Why is deflation bad?

Discussion in 'Economics' started by noob_trad3r, Aug 2, 2010.

  1. ptrjon

    ptrjon

    is there some productive end to this squabbling?

    Are we going to eliminate the fed?
     
    #61     Aug 12, 2010
  2. emg

    emg

    deflation is good. more walmart jobs
     
    #62     Aug 12, 2010
  3. Yet again, this actually doesn't demonstrate anything...

    74 years between 1838 and 1912: 0.06
    74 years between 1912 and 1986: 3.37

    As it happens, Titanic sunk in 1912. Should I conclude that the sinking of the Titanic caused higher realized inflation? 'Cause, to paraphrase you, 74 years before the event prices were stable and in the 74 years after they went up 10X. How can you prove to me that it was the creation of the Fed in 1913 and not the sinking of the Titanic that actually caused higher realized inflation?
     
    #63     Aug 12, 2010
  4. zdreg

    zdreg

    why not ask me to prove that it was not your great great grand mother o landing on ellis island was not the cause? is that logical?


    since the fed prints money it would be more reasonable to show the degree of correlation between growth of money supply since world war 2 and inflation.
     
    #64     Aug 12, 2010
  5. The reason why supporters of the Fed want a full and thorough public audit is to finally stop the tin-foil hat theory.

    The most logical course of action would be to open the books and prove there is no "there" there.

    Napolitano on FOX News said that before the Fed, the value of the dollar rose 8%. After 1913, the value of the dollar dropped 92%. That's a big drop.
     
    #65     Aug 12, 2010
  6. zdreg

    zdreg

     
    #66     Aug 12, 2010
  7. ptrjon

    ptrjon

    so- we disagree on how we see the past?

    this thread needs to be moved to chit chat...
     
    #67     Aug 12, 2010
  8. zdreg

    zdreg

    let's see some definitive proof that deflation is bad.
     
    #68     Aug 12, 2010
  9. Nothing like beating a a dead horse eh.

    Is the Great Depression enough proof that deflation is bad?
     
    #69     Aug 12, 2010
  10. That is an interesting idea - that the Fed fulfills the wants of politicians to spend on whatever programs they want by providing money via inflation, which is really just a tax.
     
    #70     Aug 12, 2010