Home › Forums › Financial Markets/Economics › Already 5 Years Into a Lost Decade
- This topic has 335 replies, 20 voices, and was last updated 14 years, 2 months ago by
gandalf.
-
AuthorPosts
-
October 17, 2010 at 6:05 PM #620243October 17, 2010 at 8:16 PM #619200
CA renter
Participant[quote=walterwhite]Growth may be the problem not the solution. Cancers grow nicely.[/quote]
Bingo!
The **solution** to our problems is deflation. Inflation favors asset holders. Deflation favors workers’ wages (stickier on the way down). Our problem stems from “growing” asset prices via too much debt. It means that workers can buy less with their wages, especially since wages have in no way kept up with asset price inflation (globalization sees to that). This leads to the wealth disparty and debt saturation that is at the root of our problems.
Deflation is the only sustainable solution to our problems. There is a limit as to how much damage deflation can do — prices will NOT go to zero, no matter how much the asset holders try to scare us with the “deflationary death spiral” fairytales. Inflation has no upper bounds (until it implodes); it can go on until every wage worker lives in dire poverty, and it causes much, much more damage than deflation ever could.
Know that those who have the money/power are the ones who favor inflation and try to scare us with made-up tales of deflation. Give me one example of a country that was destroyed by deflation (I can’t think of one — if Japan is the worst-case scenario, let’s have some of what they’re having!). Let’s compare that to the numerous stories of civilizations that were destroyed by inflation. Deflation is by far the better choice for working people, but it would reduce the wealth and power of the oligarchs who control us. That’s why they’re fighting it so hard.
October 17, 2010 at 8:16 PM #619282Participant[quote=walterwhite]Growth may be the problem not the solution. Cancers grow nicely.[/quote]
Bingo!
The **solution** to our problems is deflation. Inflation favors asset holders. Deflation favors workers’ wages (stickier on the way down). Our problem stems from “growing” asset prices via too much debt. It means that workers can buy less with their wages, especially since wages have in no way kept up with asset price inflation (globalization sees to that). This leads to the wealth disparty and debt saturation that is at the root of our problems.
Deflation is the only sustainable solution to our problems. There is a limit as to how much damage deflation can do — prices will NOT go to zero, no matter how much the asset holders try to scare us with the “deflationary death spiral” fairytales. Inflation has no upper bounds (until it implodes); it can go on until every wage worker lives in dire poverty, and it causes much, much more damage than deflation ever could.
Know that those who have the money/power are the ones who favor inflation and try to scare us with made-up tales of deflation. Give me one example of a country that was destroyed by deflation (I can’t think of one — if Japan is the worst-case scenario, let’s have some of what they’re having!). Let’s compare that to the numerous stories of civilizations that were destroyed by inflation. Deflation is by far the better choice for working people, but it would reduce the wealth and power of the oligarchs who control us. That’s why they’re fighting it so hard.
October 17, 2010 at 8:16 PM #619834Participant[quote=walterwhite]Growth may be the problem not the solution. Cancers grow nicely.[/quote]
Bingo!
The **solution** to our problems is deflation. Inflation favors asset holders. Deflation favors workers’ wages (stickier on the way down). Our problem stems from “growing” asset prices via too much debt. It means that workers can buy less with their wages, especially since wages have in no way kept up with asset price inflation (globalization sees to that). This leads to the wealth disparty and debt saturation that is at the root of our problems.
Deflation is the only sustainable solution to our problems. There is a limit as to how much damage deflation can do — prices will NOT go to zero, no matter how much the asset holders try to scare us with the “deflationary death spiral” fairytales. Inflation has no upper bounds (until it implodes); it can go on until every wage worker lives in dire poverty, and it causes much, much more damage than deflation ever could.
Know that those who have the money/power are the ones who favor inflation and try to scare us with made-up tales of deflation. Give me one example of a country that was destroyed by deflation (I can’t think of one — if Japan is the worst-case scenario, let’s have some of what they’re having!). Let’s compare that to the numerous stories of civilizations that were destroyed by inflation. Deflation is by far the better choice for working people, but it would reduce the wealth and power of the oligarchs who control us. That’s why they’re fighting it so hard.
October 17, 2010 at 8:16 PM #619953Participant[quote=walterwhite]Growth may be the problem not the solution. Cancers grow nicely.[/quote]
Bingo!
The **solution** to our problems is deflation. Inflation favors asset holders. Deflation favors workers’ wages (stickier on the way down). Our problem stems from “growing” asset prices via too much debt. It means that workers can buy less with their wages, especially since wages have in no way kept up with asset price inflation (globalization sees to that). This leads to the wealth disparty and debt saturation that is at the root of our problems.
Deflation is the only sustainable solution to our problems. There is a limit as to how much damage deflation can do — prices will NOT go to zero, no matter how much the asset holders try to scare us with the “deflationary death spiral” fairytales. Inflation has no upper bounds (until it implodes); it can go on until every wage worker lives in dire poverty, and it causes much, much more damage than deflation ever could.
Know that those who have the money/power are the ones who favor inflation and try to scare us with made-up tales of deflation. Give me one example of a country that was destroyed by deflation (I can’t think of one — if Japan is the worst-case scenario, let’s have some of what they’re having!). Let’s compare that to the numerous stories of civilizations that were destroyed by inflation. Deflation is by far the better choice for working people, but it would reduce the wealth and power of the oligarchs who control us. That’s why they’re fighting it so hard.
October 17, 2010 at 8:16 PM #620274Participant[quote=walterwhite]Growth may be the problem not the solution. Cancers grow nicely.[/quote]
Bingo!
The **solution** to our problems is deflation. Inflation favors asset holders. Deflation favors workers’ wages (stickier on the way down). Our problem stems from “growing” asset prices via too much debt. It means that workers can buy less with their wages, especially since wages have in no way kept up with asset price inflation (globalization sees to that). This leads to the wealth disparty and debt saturation that is at the root of our problems.
Deflation is the only sustainable solution to our problems. There is a limit as to how much damage deflation can do — prices will NOT go to zero, no matter how much the asset holders try to scare us with the “deflationary death spiral” fairytales. Inflation has no upper bounds (until it implodes); it can go on until every wage worker lives in dire poverty, and it causes much, much more damage than deflation ever could.
Know that those who have the money/power are the ones who favor inflation and try to scare us with made-up tales of deflation. Give me one example of a country that was destroyed by deflation (I can’t think of one — if Japan is the worst-case scenario, let’s have some of what they’re having!). Let’s compare that to the numerous stories of civilizations that were destroyed by inflation. Deflation is by far the better choice for working people, but it would reduce the wealth and power of the oligarchs who control us. That’s why they’re fighting it so hard.
October 17, 2010 at 8:50 PM #619215
Rich ToscanoKeymasterGiven that the mid-2000s flurry of debt- and speculation-fueled “growth” really wasn’t sustainable growth at all, I’d say we’re more like 10 years in to a lost decade. For what that distinction is worth (which I admit is not much).
As for this article, it just makes me laugh that the Japan scenario is presented as the most dire possible outcome (literally: “should the most dire forecasts come to pass” — from the article).
I think we’ll be really lucky if it ends up playing out the way it did in Japan. Japan has (or at least had, in the case of the latter) a huge current account surplus and high savings rate. It was never in the situation that we are, which is that we are utterly dependent on foreign lending. Should our creditors pull the plug, that will be a lot more economically painful than the mild deflation and stagnant growth that took place in Japan.
October 17, 2010 at 8:50 PM #619297Rich ToscanoKeymasterGiven that the mid-2000s flurry of debt- and speculation-fueled “growth” really wasn’t sustainable growth at all, I’d say we’re more like 10 years in to a lost decade. For what that distinction is worth (which I admit is not much).
As for this article, it just makes me laugh that the Japan scenario is presented as the most dire possible outcome (literally: “should the most dire forecasts come to pass” — from the article).
I think we’ll be really lucky if it ends up playing out the way it did in Japan. Japan has (or at least had, in the case of the latter) a huge current account surplus and high savings rate. It was never in the situation that we are, which is that we are utterly dependent on foreign lending. Should our creditors pull the plug, that will be a lot more economically painful than the mild deflation and stagnant growth that took place in Japan.
October 17, 2010 at 8:50 PM #619849Rich ToscanoKeymasterGiven that the mid-2000s flurry of debt- and speculation-fueled “growth” really wasn’t sustainable growth at all, I’d say we’re more like 10 years in to a lost decade. For what that distinction is worth (which I admit is not much).
As for this article, it just makes me laugh that the Japan scenario is presented as the most dire possible outcome (literally: “should the most dire forecasts come to pass” — from the article).
I think we’ll be really lucky if it ends up playing out the way it did in Japan. Japan has (or at least had, in the case of the latter) a huge current account surplus and high savings rate. It was never in the situation that we are, which is that we are utterly dependent on foreign lending. Should our creditors pull the plug, that will be a lot more economically painful than the mild deflation and stagnant growth that took place in Japan.
October 17, 2010 at 8:50 PM #619968Rich ToscanoKeymasterGiven that the mid-2000s flurry of debt- and speculation-fueled “growth” really wasn’t sustainable growth at all, I’d say we’re more like 10 years in to a lost decade. For what that distinction is worth (which I admit is not much).
As for this article, it just makes me laugh that the Japan scenario is presented as the most dire possible outcome (literally: “should the most dire forecasts come to pass” — from the article).
I think we’ll be really lucky if it ends up playing out the way it did in Japan. Japan has (or at least had, in the case of the latter) a huge current account surplus and high savings rate. It was never in the situation that we are, which is that we are utterly dependent on foreign lending. Should our creditors pull the plug, that will be a lot more economically painful than the mild deflation and stagnant growth that took place in Japan.
October 17, 2010 at 8:50 PM #620287Rich ToscanoKeymasterGiven that the mid-2000s flurry of debt- and speculation-fueled “growth” really wasn’t sustainable growth at all, I’d say we’re more like 10 years in to a lost decade. For what that distinction is worth (which I admit is not much).
As for this article, it just makes me laugh that the Japan scenario is presented as the most dire possible outcome (literally: “should the most dire forecasts come to pass” — from the article).
I think we’ll be really lucky if it ends up playing out the way it did in Japan. Japan has (or at least had, in the case of the latter) a huge current account surplus and high savings rate. It was never in the situation that we are, which is that we are utterly dependent on foreign lending. Should our creditors pull the plug, that will be a lot more economically painful than the mild deflation and stagnant growth that took place in Japan.
October 17, 2010 at 9:08 PM #619228eavesdropper
Participant[quote=walterwhite]I vacillate wildly hour to hour[/quote]
Glad the situation is improving.
October 17, 2010 at 9:08 PM #619309Participant[quote=walterwhite]I vacillate wildly hour to hour[/quote]
Glad the situation is improving.
October 17, 2010 at 9:08 PM #619862Participant[quote=walterwhite]I vacillate wildly hour to hour[/quote]
Glad the situation is improving.
October 17, 2010 at 9:08 PM #619982Participant[quote=walterwhite]I vacillate wildly hour to hour[/quote]
Glad the situation is improving.
-
AuthorPosts
- You must be logged in to reply to this topic.