Inflation or deflation ? What do you think, and why?

[dixiegrrrrl]

[MADem]

1. I do not know, but please, no stagflation. That shit is rough. nt

[AndyTiedye]

3. That's What We've Got, Stagflation

[MADem]

7. I suppose it depends on where you live--it doesn't feel like that

where I am .... yet.

[Tuesday Afternoon]

2. all I know is

prices keep going up but, my paycheck stays the same.

to me that looks like inflation AND deflation.

I sure feel deflated :(

:shrug:

[applegrove]

4. Right now the unemployed, unions under attack and people who lost all

kinds of saving in their mortgages are fighting inflation for the rich.

[customerserviceguy]

5. Nine months ago, I would have said inflation

But today, I'm looking at deflation. Observe the prices of oil, precious metals, and even basic food commodities, and you see where this is all pointing. My union will hit the negotiating table in the next few months, we'll be lucky if they come away with the 2% that our NY branch got.

[stevebreeze]

6. there must be demand for prices to rise.

With 10% unemployment that aint gonna happen.

[clixtox]

8. Capitulation/Meltdown

The whole financial house-of-cards is unsustainable and currently poised on a very shaky precipice of debt and corruption.

It is destined to crash, it just a matter of time(ing)...

Assemble your "trade bait" to sustain yourself during the coming hard times, I'm talking about really hard times!

These daze selling off whatever capital goods you possess, collectibles, coins, precious metals, art, second homes, investment property, etc. is how many of us are staying solvent.

Guns and bullets might even be a sensible investment if you know how to, or go learn how to, safely handle, store and use them.

Who knows...

Personally, I've fled...

See ya!

[bemildred]

9. Chaos, volatility, fibrillation, that's what I expect.

Some markets seem deflationary, some seem inflationary, some just seem manipulated and go up and down in a range, except when they don't.

[dixiegrrrrl]

10. Yeah, I find it really hard to trust what the markets are really saying and doing

so many are clearly artificial and manipulated.

[bemildred]

11. I find the constant use of mathematical methods inappropriate.

It's not physics, it's not even close to physics, it's more like forecasting the weather or sunspots, to the extent that it is not overtly rigged. You know it's going to change, but you have at best speculative ideas about how or when.

So anyway, when somebody starts trotting out the financial statistics and telling me what they "mean" and what is going to happen and when, I don't pay much attention, and I would never give such people money to play with.

[Art_from_Ark]

13. I agree about the mathematical methods

They're about as accurate as reading tea leaves, especially with regard to the international markets.

[Blue Meany]

12. Both - deflations in the value of things we have (homes, retirement)

inflaction in the value of things we need (food, medicine, energy). That's been the pattern for a while. In the long run I expect the dollar to be devalued, which would give rise to inflation.

[mother earth]

14. Either way, Revolution is in the air...we've all taken enough hits.

[roamer65]

15. Inflation.

The Federal Reserve is going to try one more MASSIVE quantitative easing to try to jump start the economy. When it doesn't work, all hell will break loose.

[golfguru]

21. The feds are out of bullets

They can do QE3, QE4, QE5....ad nauseum
It will not work. The reasons are not complicated.

In order for easy money to work, there has to be willing borrowers who want to borrow to expand/start business. The Feds just cant send us all $1000 checks in the mail. That will cause inflation without boosting jobs.

What this economy needs is demand growth. And that can only come from PERMANENT jobs, not one time temporary projects on borrowed/printed money. That has been tried and failed every time. Until they discover a method to boost permanent, productive, and real business jobs, we are screwed.

[OllieLotte]

16. Both...neither?

I think we have significant inflation on food, energy and commodities. Deflation on housing and wages in general.

[abelenkpe]

17. Deflation

Another global depression as credit contracts n money printing no where near makes up for amount that disappears

[Name removed]

18. Deleted message

Message removed by moderator. Click here to review the message board rules.

[Dover]

19. I don't know that there is any place else to go but deflation.

But I'm no expert. I think Japan is in a deflationary period, and has been for many years.

[golfguru]

22. Only their stock values and housing is in deflation

Price of food and energy is moving along with world markets.

[chunter]

20. Get Rid of the Fed and Give us some Deflation!

The one good thing from a recession/depression is lower prices. The Fed took that away from us. Must be nice, though, for the big fat cat corporate CEOs who benefit from Fed policy with low interest loans, or flat out bailouts! Must be real nice.

[asymptote]

23. Neither.

Core inflation, that is, inflation not accounting for food and energy prices, which are susceptible to fluctuations on global commodity markets and thus are not as strongly indicative of general inflationary trends, is very low. Quantitative easing hasn't been inflationary because it still hasn't sated peoples' collective liquidity preference, i.e. their preference to hold on to their money instead of spending it. A moderate increase inflation would actually be beneficial at this stage, since it would erode the value of both real debts (therefore getting consumers to wind down on de-leveraging and start spending more) and real savings (which would force corporations to stop sitting on their hoards of trillions of dollars and actually invest it in something with a positive rate of return).