Home › Forums › Financial Markets/Economics › You say Inflation…I say deflation?!
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Bubblesitter.
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August 11, 2010 at 5:42 AM #17819August 11, 2010 at 8:04 AM #589203
GH
ParticipantAn issue I seldom see addressed is that everyone wants a high rate or return on investment, Stocks must go up 8% a year, houses must go up 8% a year, banks must give 5% and so on. At the same time we demand ZERO inflation, and the Fed obliges by turning the screws on inflation.
The way I see it this has resulted in a massive pressure cooker economy with bubbles blowing left right and center. Now the whole thing is starting to look more like a soufflé though.
My question to those wiser than I… How can you maintain huge investment growth and zero inflation?
August 11, 2010 at 8:04 AM #589298GH
ParticipantAn issue I seldom see addressed is that everyone wants a high rate or return on investment, Stocks must go up 8% a year, houses must go up 8% a year, banks must give 5% and so on. At the same time we demand ZERO inflation, and the Fed obliges by turning the screws on inflation.
The way I see it this has resulted in a massive pressure cooker economy with bubbles blowing left right and center. Now the whole thing is starting to look more like a soufflé though.
My question to those wiser than I… How can you maintain huge investment growth and zero inflation?
August 11, 2010 at 8:04 AM #589833GH
ParticipantAn issue I seldom see addressed is that everyone wants a high rate or return on investment, Stocks must go up 8% a year, houses must go up 8% a year, banks must give 5% and so on. At the same time we demand ZERO inflation, and the Fed obliges by turning the screws on inflation.
The way I see it this has resulted in a massive pressure cooker economy with bubbles blowing left right and center. Now the whole thing is starting to look more like a soufflé though.
My question to those wiser than I… How can you maintain huge investment growth and zero inflation?
August 11, 2010 at 8:04 AM #589941GH
ParticipantAn issue I seldom see addressed is that everyone wants a high rate or return on investment, Stocks must go up 8% a year, houses must go up 8% a year, banks must give 5% and so on. At the same time we demand ZERO inflation, and the Fed obliges by turning the screws on inflation.
The way I see it this has resulted in a massive pressure cooker economy with bubbles blowing left right and center. Now the whole thing is starting to look more like a soufflé though.
My question to those wiser than I… How can you maintain huge investment growth and zero inflation?
August 11, 2010 at 8:04 AM #590250GH
ParticipantAn issue I seldom see addressed is that everyone wants a high rate or return on investment, Stocks must go up 8% a year, houses must go up 8% a year, banks must give 5% and so on. At the same time we demand ZERO inflation, and the Fed obliges by turning the screws on inflation.
The way I see it this has resulted in a massive pressure cooker economy with bubbles blowing left right and center. Now the whole thing is starting to look more like a soufflé though.
My question to those wiser than I… How can you maintain huge investment growth and zero inflation?
August 11, 2010 at 8:37 AM #589228briansd1
Guest[quote=GH]
My question to those wiser than I… How can you maintain huge investment growth and zero inflation?[/quote]
Productivity and population growth.
Problem is American workers are already as productive as can be right now.
And there’s rising public sentiment against immigration.
August 11, 2010 at 8:37 AM #589323briansd1
Guest[quote=GH]
My question to those wiser than I… How can you maintain huge investment growth and zero inflation?[/quote]
Productivity and population growth.
Problem is American workers are already as productive as can be right now.
And there’s rising public sentiment against immigration.
August 11, 2010 at 8:37 AM #589858briansd1
Guest[quote=GH]
My question to those wiser than I… How can you maintain huge investment growth and zero inflation?[/quote]
Productivity and population growth.
Problem is American workers are already as productive as can be right now.
And there’s rising public sentiment against immigration.
August 11, 2010 at 8:37 AM #589966briansd1
Guest[quote=GH]
My question to those wiser than I… How can you maintain huge investment growth and zero inflation?[/quote]
Productivity and population growth.
Problem is American workers are already as productive as can be right now.
And there’s rising public sentiment against immigration.
August 11, 2010 at 8:37 AM #590275briansd1
Guest[quote=GH]
My question to those wiser than I… How can you maintain huge investment growth and zero inflation?[/quote]
Productivity and population growth.
Problem is American workers are already as productive as can be right now.
And there’s rising public sentiment against immigration.
August 11, 2010 at 8:54 AM #589243Arraya
ParticipantBrian you don’t understand how the economy works.
If there is zero inflation(as defined by an increase in money supply), than there is little to zero investment growth and actually it becomes quite dysfunctional, if it is not growing, as we will see.
As if, we just add some population the economy will magically grow. Good grief
August 11, 2010 at 8:54 AM #589338Arraya
ParticipantBrian you don’t understand how the economy works.
If there is zero inflation(as defined by an increase in money supply), than there is little to zero investment growth and actually it becomes quite dysfunctional, if it is not growing, as we will see.
As if, we just add some population the economy will magically grow. Good grief
August 11, 2010 at 8:54 AM #589873Arraya
ParticipantBrian you don’t understand how the economy works.
If there is zero inflation(as defined by an increase in money supply), than there is little to zero investment growth and actually it becomes quite dysfunctional, if it is not growing, as we will see.
As if, we just add some population the economy will magically grow. Good grief
August 11, 2010 at 8:54 AM #589981Arraya
ParticipantBrian you don’t understand how the economy works.
If there is zero inflation(as defined by an increase in money supply), than there is little to zero investment growth and actually it becomes quite dysfunctional, if it is not growing, as we will see.
As if, we just add some population the economy will magically grow. Good grief
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