inflation or deflation!!?

[GunDoctor]

Lets see housing prices are going down. and food and energy are going up.

I don’t know who is going to be right inflationist or the deflationist camps. either way I see pain for the average joe.

I guess when a whole pizza cost 100k we will have inflated our way out of the housing crisis.
god help us.

http://money.cnn.com/2008/03/19/smbusiness/Chernoff_pizza/index.htm?postversion=2008031912

[svelte]

I’m betting we’ll see continued deflation in housing prices, but inflation taking off for the stars in all other categories including wages. Sooner or later, the twain shall meet.

[JWM in SD]

JWM in SD

“…in all other categories including wages…”

Uhh, you wanna bet on that one?

[jonnycsd]

Typically wages do move with inflation, just not nearly as fast as prices. This is the hidden “tax” we will all pay to fund the Federal Reserve bail out currently underway. And to pay for all the deficit spending by the Federal Government (war, social programs, tax cuts – sooner or later it all lands somewhere – you can’t get something for nothing – and I thought my GOP was fiscally responsible, sheesh!).

Agreed the twain shall eventually meet – many years from now. Gonna be a tough ride getting there for lots of folks.

[jonnycsd]

Typically wages do move with inflation, just not nearly as fast as prices. This is the hidden “tax” we will all pay to fund the Federal Reserve bail out currently underway. And to pay for all the deficit spending by the Federal Government (war, social programs, tax cuts – sooner or later it all lands somewhere – you can’t get something for nothing – and I thought my GOP was fiscally responsible, sheesh!).

Agreed the twain shall eventually meet – many years from now. Gonna be a tough ride getting there for lots of folks.

[jonnycsd]

Typically wages do move with inflation, just not nearly as fast as prices. This is the hidden “tax” we will all pay to fund the Federal Reserve bail out currently underway. And to pay for all the deficit spending by the Federal Government (war, social programs, tax cuts – sooner or later it all lands somewhere – you can’t get something for nothing – and I thought my GOP was fiscally responsible, sheesh!).

Agreed the twain shall eventually meet – many years from now. Gonna be a tough ride getting there for lots of folks.

[jonnycsd]

Typically wages do move with inflation, just not nearly as fast as prices. This is the hidden “tax” we will all pay to fund the Federal Reserve bail out currently underway. And to pay for all the deficit spending by the Federal Government (war, social programs, tax cuts – sooner or later it all lands somewhere – you can’t get something for nothing – and I thought my GOP was fiscally responsible, sheesh!).

Agreed the twain shall eventually meet – many years from now. Gonna be a tough ride getting there for lots of folks.

[jonnycsd]

Typically wages do move with inflation, just not nearly as fast as prices. This is the hidden “tax” we will all pay to fund the Federal Reserve bail out currently underway. And to pay for all the deficit spending by the Federal Government (war, social programs, tax cuts – sooner or later it all lands somewhere – you can’t get something for nothing – and I thought my GOP was fiscally responsible, sheesh!).

Agreed the twain shall eventually meet – many years from now. Gonna be a tough ride getting there for lots of folks.

[Arty]

Deflation – if and only if the bubble that the Fed trying to save pops. Currently, we see the inflation pressure partly due to the Fed’s action and speculation. I could be wrong as always though.

[KIBU]

JWM, can you stop deflating for a moment!

[KIBU]

JWM, can you stop deflating for a moment!

[KIBU]

JWM, can you stop deflating for a moment!

[KIBU]

JWM, can you stop deflating for a moment!

[KIBU]

JWM, can you stop deflating for a moment!

[Arty]

Deflation – if and only if the bubble that the Fed trying to save pops. Currently, we see the inflation pressure partly due to the Fed’s action and speculation. I could be wrong as always though.

[Arty]

Deflation – if and only if the bubble that the Fed trying to save pops. Currently, we see the inflation pressure partly due to the Fed’s action and speculation. I could be wrong as always though.

[Arty]

Deflation – if and only if the bubble that the Fed trying to save pops. Currently, we see the inflation pressure partly due to the Fed’s action and speculation. I could be wrong as always though.

[Arty]

Deflation – if and only if the bubble that the Fed trying to save pops. Currently, we see the inflation pressure partly due to the Fed’s action and speculation. I could be wrong as always though.

[peterb]

This is a questions I think about a lot. Because what we decide to invest in from this point forward is basically dominated by what we think will deflate and what we think will inflate. (Does anyone use the word “appreciate” anymore?) No one seems to argue that we’re in a recession and the “de-coupling” theory seems to be getting shot down more with every passing day. So it’s looking to be a global slow down.
Going back about 30 years or so, historical data seems to indicate that recessions are initially deflationary and then as we climb out of the recession, or as time passes, we start to experience inflationary pressure. And this is true for most of the first world economies. This is probably due to the lag effect of the Fed policy flooding the market with cheap money when we’re in agreement that a recession is upon us. As the cheap money effect kicks in, we start to see economic growth and inflation. Similar to what we experienced going from 2002 to 2003 and 2004.
Once there’s agreement that there’s no growth in the near future, everyone starts to look for ways to reduce costs. This tends to put a deflationary pressure on prices. What if corporate America not only lays off domestic workers, but also increases it’s flight to cheaper production and off-shore activity in order to further reduce costs? What if constricted credit remains tight or is tightened-up more in the future? In other words, what if the cheap money is put to work mostly in places outside of the USA? This scenario would lead me to think that if we dont get the growth factor from the cheap money and other countries do get it, then we’ll experience inflation on products with a global demand while we remain in a deflationary mode for things specific to our economy, like housing and wages.
I dont know how this will play out, but it seems like that’s where we were headed in 2002, but then a lot of cheap money got directed into the real estate market and that’s where most of the domestic economic growth was created from 2003 to 2006. Where will the money go this time?? Will it be able to find another vehicle in the USA?

[pencilneck]

I am admittedly of very little brain. But I have read a lot of good arguments regarding inflation and deflation over the past few years.

One of the most insightful posts I read on this matter regarded the relatively recent collapse of the Argentinean currency:

They had severe credit contractions that were very deflationary. However, while they had deflation in their own economy they unfortunately did not exist in a vacuum. The value of their currency decreased in the world markets (as creditors feared they would not be able to repay their loans) even while the amount money in their banking system also decreased. The costs of goods in Argentina increased (which is generally viewed as inflationary) even amid their credit destruction (which is generally viewed as deflationary). And the currency continued to be devalued on the world markets until the eventual collapse of their government and currency.

It took a long time for me to wrap my little brain pea brain around this but: Monetary deflation certainly does not necessarily mean that our dollar will be able to buy more in a global environment. It seems counter intuitive, but monetary deflation may also decrease the relative trading power of our currency.

Go figure.

[an]

Why does it have to be one or the other? What if we have both… stagflation like the 70s. We have the consumer spending tapped out and housing going down. At the same time, oil and commodities are sky high, which causes inflation. The easy money that get pumped into the systems can possibly stave of a full blown depression and causes just a mild recession instead. However, due to the flood of $, inflation goes through the roof. I guess only time will tell which way we go, but at this time, invest in anything seems risky since I view it as we’re at a fork in the road. Doesn’t smart money always go some where? They’re never on the sideline for long since inflation will eat away their cash. The million dollar question is, where will the next bull sector be.

[an]

Why does it have to be one or the other? What if we have both… stagflation like the 70s. We have the consumer spending tapped out and housing going down. At the same time, oil and commodities are sky high, which causes inflation. The easy money that get pumped into the systems can possibly stave of a full blown depression and causes just a mild recession instead. However, due to the flood of $, inflation goes through the roof. I guess only time will tell which way we go, but at this time, invest in anything seems risky since I view it as we’re at a fork in the road. Doesn’t smart money always go some where? They’re never on the sideline for long since inflation will eat away their cash. The million dollar question is, where will the next bull sector be.

[an]

Why does it have to be one or the other? What if we have both… stagflation like the 70s. We have the consumer spending tapped out and housing going down. At the same time, oil and commodities are sky high, which causes inflation. The easy money that get pumped into the systems can possibly stave of a full blown depression and causes just a mild recession instead. However, due to the flood of $, inflation goes through the roof. I guess only time will tell which way we go, but at this time, invest in anything seems risky since I view it as we’re at a fork in the road. Doesn’t smart money always go some where? They’re never on the sideline for long since inflation will eat away their cash. The million dollar question is, where will the next bull sector be.

[an]

Why does it have to be one or the other? What if we have both… stagflation like the 70s. We have the consumer spending tapped out and housing going down. At the same time, oil and commodities are sky high, which causes inflation. The easy money that get pumped into the systems can possibly stave of a full blown depression and causes just a mild recession instead. However, due to the flood of $, inflation goes through the roof. I guess only time will tell which way we go, but at this time, invest in anything seems risky since I view it as we’re at a fork in the road. Doesn’t smart money always go some where? They’re never on the sideline for long since inflation will eat away their cash. The million dollar question is, where will the next bull sector be.

[an]

Why does it have to be one or the other? What if we have both… stagflation like the 70s. We have the consumer spending tapped out and housing going down. At the same time, oil and commodities are sky high, which causes inflation. The easy money that get pumped into the systems can possibly stave of a full blown depression and causes just a mild recession instead. However, due to the flood of $, inflation goes through the roof. I guess only time will tell which way we go, but at this time, invest in anything seems risky since I view it as we’re at a fork in the road. Doesn’t smart money always go some where? They’re never on the sideline for long since inflation will eat away their cash. The million dollar question is, where will the next bull sector be.

[pencilneck]

I am admittedly of very little brain. But I have read a lot of good arguments regarding inflation and deflation over the past few years.

One of the most insightful posts I read on this matter regarded the relatively recent collapse of the Argentinean currency:

They had severe credit contractions that were very deflationary. However, while they had deflation in their own economy they unfortunately did not exist in a vacuum. The value of their currency decreased in the world markets (as creditors feared they would not be able to repay their loans) even while the amount money in their banking system also decreased. The costs of goods in Argentina increased (which is generally viewed as inflationary) even amid their credit destruction (which is generally viewed as deflationary). And the currency continued to be devalued on the world markets until the eventual collapse of their government and currency.

It took a long time for me to wrap my little brain pea brain around this but: Monetary deflation certainly does not necessarily mean that our dollar will be able to buy more in a global environment. It seems counter intuitive, but monetary deflation may also decrease the relative trading power of our currency.

Go figure.

[pencilneck]

I am admittedly of very little brain. But I have read a lot of good arguments regarding inflation and deflation over the past few years.

One of the most insightful posts I read on this matter regarded the relatively recent collapse of the Argentinean currency:

They had severe credit contractions that were very deflationary. However, while they had deflation in their own economy they unfortunately did not exist in a vacuum. The value of their currency decreased in the world markets (as creditors feared they would not be able to repay their loans) even while the amount money in their banking system also decreased. The costs of goods in Argentina increased (which is generally viewed as inflationary) even amid their credit destruction (which is generally viewed as deflationary). And the currency continued to be devalued on the world markets until the eventual collapse of their government and currency.

It took a long time for me to wrap my little brain pea brain around this but: Monetary deflation certainly does not necessarily mean that our dollar will be able to buy more in a global environment. It seems counter intuitive, but monetary deflation may also decrease the relative trading power of our currency.

Go figure.

[pencilneck]

I am admittedly of very little brain. But I have read a lot of good arguments regarding inflation and deflation over the past few years.

One of the most insightful posts I read on this matter regarded the relatively recent collapse of the Argentinean currency:

They had severe credit contractions that were very deflationary. However, while they had deflation in their own economy they unfortunately did not exist in a vacuum. The value of their currency decreased in the world markets (as creditors feared they would not be able to repay their loans) even while the amount money in their banking system also decreased. The costs of goods in Argentina increased (which is generally viewed as inflationary) even amid their credit destruction (which is generally viewed as deflationary). And the currency continued to be devalued on the world markets until the eventual collapse of their government and currency.

It took a long time for me to wrap my little brain pea brain around this but: Monetary deflation certainly does not necessarily mean that our dollar will be able to buy more in a global environment. It seems counter intuitive, but monetary deflation may also decrease the relative trading power of our currency.

Go figure.

[pencilneck]

I am admittedly of very little brain. But I have read a lot of good arguments regarding inflation and deflation over the past few years.

One of the most insightful posts I read on this matter regarded the relatively recent collapse of the Argentinean currency:

They had severe credit contractions that were very deflationary. However, while they had deflation in their own economy they unfortunately did not exist in a vacuum. The value of their currency decreased in the world markets (as creditors feared they would not be able to repay their loans) even while the amount money in their banking system also decreased. The costs of goods in Argentina increased (which is generally viewed as inflationary) even amid their credit destruction (which is generally viewed as deflationary). And the currency continued to be devalued on the world markets until the eventual collapse of their government and currency.

It took a long time for me to wrap my little brain pea brain around this but: Monetary deflation certainly does not necessarily mean that our dollar will be able to buy more in a global environment. It seems counter intuitive, but monetary deflation may also decrease the relative trading power of our currency.

Go figure.

[peterb]

This is a questions I think about a lot. Because what we decide to invest in from this point forward is basically dominated by what we think will deflate and what we think will inflate. (Does anyone use the word “appreciate” anymore?) No one seems to argue that we’re in a recession and the “de-coupling” theory seems to be getting shot down more with every passing day. So it’s looking to be a global slow down.
Going back about 30 years or so, historical data seems to indicate that recessions are initially deflationary and then as we climb out of the recession, or as time passes, we start to experience inflationary pressure. And this is true for most of the first world economies. This is probably due to the lag effect of the Fed policy flooding the market with cheap money when we’re in agreement that a recession is upon us. As the cheap money effect kicks in, we start to see economic growth and inflation. Similar to what we experienced going from 2002 to 2003 and 2004.
Once there’s agreement that there’s no growth in the near future, everyone starts to look for ways to reduce costs. This tends to put a deflationary pressure on prices. What if corporate America not only lays off domestic workers, but also increases it’s flight to cheaper production and off-shore activity in order to further reduce costs? What if constricted credit remains tight or is tightened-up more in the future? In other words, what if the cheap money is put to work mostly in places outside of the USA? This scenario would lead me to think that if we dont get the growth factor from the cheap money and other countries do get it, then we’ll experience inflation on products with a global demand while we remain in a deflationary mode for things specific to our economy, like housing and wages.
I dont know how this will play out, but it seems like that’s where we were headed in 2002, but then a lot of cheap money got directed into the real estate market and that’s where most of the domestic economic growth was created from 2003 to 2006. Where will the money go this time?? Will it be able to find another vehicle in the USA?

[peterb]

This is a questions I think about a lot. Because what we decide to invest in from this point forward is basically dominated by what we think will deflate and what we think will inflate. (Does anyone use the word “appreciate” anymore?) No one seems to argue that we’re in a recession and the “de-coupling” theory seems to be getting shot down more with every passing day. So it’s looking to be a global slow down.
Going back about 30 years or so, historical data seems to indicate that recessions are initially deflationary and then as we climb out of the recession, or as time passes, we start to experience inflationary pressure. And this is true for most of the first world economies. This is probably due to the lag effect of the Fed policy flooding the market with cheap money when we’re in agreement that a recession is upon us. As the cheap money effect kicks in, we start to see economic growth and inflation. Similar to what we experienced going from 2002 to 2003 and 2004.
Once there’s agreement that there’s no growth in the near future, everyone starts to look for ways to reduce costs. This tends to put a deflationary pressure on prices. What if corporate America not only lays off domestic workers, but also increases it’s flight to cheaper production and off-shore activity in order to further reduce costs? What if constricted credit remains tight or is tightened-up more in the future? In other words, what if the cheap money is put to work mostly in places outside of the USA? This scenario would lead me to think that if we dont get the growth factor from the cheap money and other countries do get it, then we’ll experience inflation on products with a global demand while we remain in a deflationary mode for things specific to our economy, like housing and wages.
I dont know how this will play out, but it seems like that’s where we were headed in 2002, but then a lot of cheap money got directed into the real estate market and that’s where most of the domestic economic growth was created from 2003 to 2006. Where will the money go this time?? Will it be able to find another vehicle in the USA?

[peterb]

This is a questions I think about a lot. Because what we decide to invest in from this point forward is basically dominated by what we think will deflate and what we think will inflate. (Does anyone use the word “appreciate” anymore?) No one seems to argue that we’re in a recession and the “de-coupling” theory seems to be getting shot down more with every passing day. So it’s looking to be a global slow down.
Going back about 30 years or so, historical data seems to indicate that recessions are initially deflationary and then as we climb out of the recession, or as time passes, we start to experience inflationary pressure. And this is true for most of the first world economies. This is probably due to the lag effect of the Fed policy flooding the market with cheap money when we’re in agreement that a recession is upon us. As the cheap money effect kicks in, we start to see economic growth and inflation. Similar to what we experienced going from 2002 to 2003 and 2004.
Once there’s agreement that there’s no growth in the near future, everyone starts to look for ways to reduce costs. This tends to put a deflationary pressure on prices. What if corporate America not only lays off domestic workers, but also increases it’s flight to cheaper production and off-shore activity in order to further reduce costs? What if constricted credit remains tight or is tightened-up more in the future? In other words, what if the cheap money is put to work mostly in places outside of the USA? This scenario would lead me to think that if we dont get the growth factor from the cheap money and other countries do get it, then we’ll experience inflation on products with a global demand while we remain in a deflationary mode for things specific to our economy, like housing and wages.
I dont know how this will play out, but it seems like that’s where we were headed in 2002, but then a lot of cheap money got directed into the real estate market and that’s where most of the domestic economic growth was created from 2003 to 2006. Where will the money go this time?? Will it be able to find another vehicle in the USA?

[peterb]

This is a questions I think about a lot. Because what we decide to invest in from this point forward is basically dominated by what we think will deflate and what we think will inflate. (Does anyone use the word “appreciate” anymore?) No one seems to argue that we’re in a recession and the “de-coupling” theory seems to be getting shot down more with every passing day. So it’s looking to be a global slow down.
Going back about 30 years or so, historical data seems to indicate that recessions are initially deflationary and then as we climb out of the recession, or as time passes, we start to experience inflationary pressure. And this is true for most of the first world economies. This is probably due to the lag effect of the Fed policy flooding the market with cheap money when we’re in agreement that a recession is upon us. As the cheap money effect kicks in, we start to see economic growth and inflation. Similar to what we experienced going from 2002 to 2003 and 2004.
Once there’s agreement that there’s no growth in the near future, everyone starts to look for ways to reduce costs. This tends to put a deflationary pressure on prices. What if corporate America not only lays off domestic workers, but also increases it’s flight to cheaper production and off-shore activity in order to further reduce costs? What if constricted credit remains tight or is tightened-up more in the future? In other words, what if the cheap money is put to work mostly in places outside of the USA? This scenario would lead me to think that if we dont get the growth factor from the cheap money and other countries do get it, then we’ll experience inflation on products with a global demand while we remain in a deflationary mode for things specific to our economy, like housing and wages.
I dont know how this will play out, but it seems like that’s where we were headed in 2002, but then a lot of cheap money got directed into the real estate market and that’s where most of the domestic economic growth was created from 2003 to 2006. Where will the money go this time?? Will it be able to find another vehicle in the USA?

[svelte]

?…in all other categories including wages…”

Uhh, you wanna bet on that one?

lol, I’m not sure enough to bet on it, I definitely could be wrong.

But with the dollar falling, demand for our goods worldwide should increase. Hopefully that will keep employment levels high enough to offset the job losses in construction and finance. Time will tell.

[svelte]

?…in all other categories including wages…”

Uhh, you wanna bet on that one?

lol, I’m not sure enough to bet on it, I definitely could be wrong.

But with the dollar falling, demand for our goods worldwide should increase. Hopefully that will keep employment levels high enough to offset the job losses in construction and finance. Time will tell.

[svelte]

?…in all other categories including wages…”

Uhh, you wanna bet on that one?

lol, I’m not sure enough to bet on it, I definitely could be wrong.

But with the dollar falling, demand for our goods worldwide should increase. Hopefully that will keep employment levels high enough to offset the job losses in construction and finance. Time will tell.

[svelte]

?…in all other categories including wages…”

Uhh, you wanna bet on that one?

lol, I’m not sure enough to bet on it, I definitely could be wrong.

But with the dollar falling, demand for our goods worldwide should increase. Hopefully that will keep employment levels high enough to offset the job losses in construction and finance. Time will tell.

[svelte]

?…in all other categories including wages…”

Uhh, you wanna bet on that one?

lol, I’m not sure enough to bet on it, I definitely could be wrong.

But with the dollar falling, demand for our goods worldwide should increase. Hopefully that will keep employment levels high enough to offset the job losses in construction and finance. Time will tell.

[JWM in SD]

JWM in SD

“…in all other categories including wages…”

Uhh, you wanna bet on that one?

[JWM in SD]

JWM in SD

“…in all other categories including wages…”

Uhh, you wanna bet on that one?

[JWM in SD]

JWM in SD

“…in all other categories including wages…”

Uhh, you wanna bet on that one?

[JWM in SD]

JWM in SD

“…in all other categories including wages…”

Uhh, you wanna bet on that one?

[svelte]

I’m betting we’ll see continued deflation in housing prices, but inflation taking off for the stars in all other categories including wages. Sooner or later, the twain shall meet.

[svelte]

I’m betting we’ll see continued deflation in housing prices, but inflation taking off for the stars in all other categories including wages. Sooner or later, the twain shall meet.

[svelte]

I’m betting we’ll see continued deflation in housing prices, but inflation taking off for the stars in all other categories including wages. Sooner or later, the twain shall meet.

[svelte]

I’m betting we’ll see continued deflation in housing prices, but inflation taking off for the stars in all other categories including wages. Sooner or later, the twain shall meet.

[Coronita]

Doesn't help that China  keeps pegging the  yuan to the dollar and that companies like Dell keep shifting to components made there.

 

Editorial notes: As if Dell's desktops/laptops weren't already POS's….Dell can now go from  crappy desktops and laptops to even CRAPIER desktop and laptops. Sounds like a winning proposition to me. What now, "Walmart inside" stickers on the laptops?

 

 

 

 Dell to buy $52 bln components from China
Thursday March 20, 10:10 am ET
By Kirby Chien

BEIJING (Reuters) – Dell Inc (NasdaqGS:DELL – News) plans to buy $23 billion of components from China this year and $29 billion in 2009, helping it reduce costs while the company's main market, the United States, is facing recession.

The commoditization of computer hardware means competition is more a function of price and efficiency than quality and branding, making China a favorite place to source a broad range of goods, including electronic components.

"China is critical to Dell's global supply chain," founder and Chief Executive Michael Dell told reporters on Thursday.

"Dell will purchase $70 billion of computer-related supplies and equipment from China," he said, referring to total purchases over the 2007-2009 period.

The world's second-largest personal computer maker, Dell is far from alone in looking to China to reduce manufacturing costs and remain competitive.

Last November, Cisco Systems Inc (NasdaqGS:CSCO – News) said it would almost double its purchasing from Chinese suppliers over five years to $16 billion.

Cisco is the biggest maker of routers, switches and other equipment that make up the Internet.

Hardware makers such as Dell, Cisco and Hewlett-Packard (NYSE:HPQ – News; HP) could be hit hard by a U.S. economic downturn, Dell even more so because it relies on the U.S. for about half of its revenue, a much higher proportion than larger rival HP.

That makes China's role as a customer equally important to Dell, which saw a 54 percent rise in unit sales on the mainland during its last financial quarter.

"China is one of the most dynamic and fastest-growing economies in the world, and we've made significant business and social investments here in the past 10 years," said Michael Dell.

Dell's presence in China includes two manufacturing operations in the south, a product design centre in Shanghai — one of the company's largest — and a sales support centre in the north east for customers in Japan and Korea.

The company lost top market-share spot to HP in 2006 as consumers favored buying notebook PCs in stores, leading it to abandon last year a long-standing direct-only sales model.

It now sells PCs in retailers such as Wal-Mart Stores Inc (NYSE:WMT – News), Carrefour SA (Paris:CARR.PA – News) in Europe and China's GOME Electrical Appliances Holding Ltd (HKSE:0493.HK – News).

Dell was speaking at an event to celebrate 10 years of operations in China.

($=7.06 yuan)

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[stansd]

Apologize if this has been mentioned before, but I remain a bit confused and find this thread fascinating.

It seems like those talking about deflation are referring to asset price deflation wheras the inflationistas are referring to consumer prices. In my mind, there is a good chance of both of these occurring simultaneously-the recession causes asset price deflation while the commodities boom, emerging economy demand, and dollar devaluation cause consumer inflation.

End result is stagflation, deflation (asset), and inflation (consumer prices) simultaneously. End effect is boomers don’t have enough to retire (this is already true, but it gets worse), but those of us in the younger set are better positioned on investments since prices are reasonable, but lose a few notches on standard of living as wages don’t keep up with the prices of the stuff we buy.

Thoughts?

Stan

[Anonymous]

This has been bugging me for a while. I was first a deflationist then turned inflationist. It seems like one problem we have in discussing this is that many deflationists argue about money supply. They treat credit as money and define inflation or deflation as monetary events: expansion or contraction in the money supply.

Inflationists seem to be more fixed on prices. They tend to argue inflation or deflation as a price phenomena. That difference makes meaningful understanding or arguing difficult.

That being said, I tend to agree with pencilneck. We don’t exist in a vacuum. While debt being destroyed causes our money supply to contract, we can still see a drastic increase in prices as the dollar falls and we import goods. Inflation or deflation? Guess it depends on your definition.

My hardest point to swallow about inflation is how does the inflation make it to wages. In the 70s we had unions to push the wages up. We don’t have that now. We have globalization to push them down. For deflation, when I see so many prices rising precipitously, it makes me wonder about that argument.

I tend to agree with the itulip guys that we are headed for inflation. I like their idea that we will try to blow another bubble in alt energy and/or infrastructure. But using methods other than credit.

Just my 2c…

[Anonymous]

This has been bugging me for a while. I was first a deflationist then turned inflationist. It seems like one problem we have in discussing this is that many deflationists argue about money supply. They treat credit as money and define inflation or deflation as monetary events: expansion or contraction in the money supply.

Inflationists seem to be more fixed on prices. They tend to argue inflation or deflation as a price phenomena. That difference makes meaningful understanding or arguing difficult.

That being said, I tend to agree with pencilneck. We don’t exist in a vacuum. While debt being destroyed causes our money supply to contract, we can still see a drastic increase in prices as the dollar falls and we import goods. Inflation or deflation? Guess it depends on your definition.

My hardest point to swallow about inflation is how does the inflation make it to wages. In the 70s we had unions to push the wages up. We don’t have that now. We have globalization to push them down. For deflation, when I see so many prices rising precipitously, it makes me wonder about that argument.

I tend to agree with the itulip guys that we are headed for inflation. I like their idea that we will try to blow another bubble in alt energy and/or infrastructure. But using methods other than credit.

Just my 2c…

[Anonymous]

This has been bugging me for a while. I was first a deflationist then turned inflationist. It seems like one problem we have in discussing this is that many deflationists argue about money supply. They treat credit as money and define inflation or deflation as monetary events: expansion or contraction in the money supply.

Inflationists seem to be more fixed on prices. They tend to argue inflation or deflation as a price phenomena. That difference makes meaningful understanding or arguing difficult.

That being said, I tend to agree with pencilneck. We don’t exist in a vacuum. While debt being destroyed causes our money supply to contract, we can still see a drastic increase in prices as the dollar falls and we import goods. Inflation or deflation? Guess it depends on your definition.

My hardest point to swallow about inflation is how does the inflation make it to wages. In the 70s we had unions to push the wages up. We don’t have that now. We have globalization to push them down. For deflation, when I see so many prices rising precipitously, it makes me wonder about that argument.

I tend to agree with the itulip guys that we are headed for inflation. I like their idea that we will try to blow another bubble in alt energy and/or infrastructure. But using methods other than credit.

Just my 2c…

[Anonymous]

This has been bugging me for a while. I was first a deflationist then turned inflationist. It seems like one problem we have in discussing this is that many deflationists argue about money supply. They treat credit as money and define inflation or deflation as monetary events: expansion or contraction in the money supply.

Inflationists seem to be more fixed on prices. They tend to argue inflation or deflation as a price phenomena. That difference makes meaningful understanding or arguing difficult.

That being said, I tend to agree with pencilneck. We don’t exist in a vacuum. While debt being destroyed causes our money supply to contract, we can still see a drastic increase in prices as the dollar falls and we import goods. Inflation or deflation? Guess it depends on your definition.

My hardest point to swallow about inflation is how does the inflation make it to wages. In the 70s we had unions to push the wages up. We don’t have that now. We have globalization to push them down. For deflation, when I see so many prices rising precipitously, it makes me wonder about that argument.

I tend to agree with the itulip guys that we are headed for inflation. I like their idea that we will try to blow another bubble in alt energy and/or infrastructure. But using methods other than credit.

Just my 2c…

[Anonymous]

This has been bugging me for a while. I was first a deflationist then turned inflationist. It seems like one problem we have in discussing this is that many deflationists argue about money supply. They treat credit as money and define inflation or deflation as monetary events: expansion or contraction in the money supply.

Inflationists seem to be more fixed on prices. They tend to argue inflation or deflation as a price phenomena. That difference makes meaningful understanding or arguing difficult.

That being said, I tend to agree with pencilneck. We don’t exist in a vacuum. While debt being destroyed causes our money supply to contract, we can still see a drastic increase in prices as the dollar falls and we import goods. Inflation or deflation? Guess it depends on your definition.

My hardest point to swallow about inflation is how does the inflation make it to wages. In the 70s we had unions to push the wages up. We don’t have that now. We have globalization to push them down. For deflation, when I see so many prices rising precipitously, it makes me wonder about that argument.

I tend to agree with the itulip guys that we are headed for inflation. I like their idea that we will try to blow another bubble in alt energy and/or infrastructure. But using methods other than credit.

Just my 2c…

[USMCBunny]

I don’t claim to be very smart on macro econonics, like a lot of lurkers here, I learn from reading this and a couple other blogs.

The best simple definitions of Inflation / Deflation that I have read are simply that Inflation is the creation of wealth, and that deflation is the destruction of wealth. Wealth- obviously can be defined as actual $$$’s (paper or Electronic, “Stuff” (material goods) or even tranferable Debt (The future value of debt anyway … to whomever is getting the monthly payment).

The bursting of the bubble will lead to the destruction of close to a trillion dollars before it is over with. This trillion dollars (A number you could certainly argue up or down) was the notional value of home equity gains and may or may not have been turned into other forms of wealth via HELOC and refinance. Either way – this wealth is rapidly evaporating… it will be gone. This is the destruction of wealth and must be viewed as deflationary.

The inflation / creation of wealth already happened from 2000-2005 via all the paper gains. We are now deflating.

If the US Govt actually buys MBS mortgage debt (which I think would require a change in federal law) – they could potentially create more real debt. (By purchasing them for more then they are actually worth, they would in essence be creating dollars…) this would be inflationary. Until this happens, wealth is still being destroyed (if you owned Bear Stearns Stock… your wealth was destroyed).

I think the price increases we are seeing come not from the creation of dollars, but from the devaluation of the dollars currently in existance. Price increases do not in themselves constitute inflation, and in my thoughts may be more based on deflationary pressure and the consequent reactions to that pressure.

Flywestcoast

[USMCBunny]

I don’t claim to be very smart on macro econonics, like a lot of lurkers here, I learn from reading this and a couple other blogs.

The best simple definitions of Inflation / Deflation that I have read are simply that Inflation is the creation of wealth, and that deflation is the destruction of wealth. Wealth- obviously can be defined as actual $$$’s (paper or Electronic, “Stuff” (material goods) or even tranferable Debt (The future value of debt anyway … to whomever is getting the monthly payment).

The bursting of the bubble will lead to the destruction of close to a trillion dollars before it is over with. This trillion dollars (A number you could certainly argue up or down) was the notional value of home equity gains and may or may not have been turned into other forms of wealth via HELOC and refinance. Either way – this wealth is rapidly evaporating… it will be gone. This is the destruction of wealth and must be viewed as deflationary.

The inflation / creation of wealth already happened from 2000-2005 via all the paper gains. We are now deflating.

If the US Govt actually buys MBS mortgage debt (which I think would require a change in federal law) – they could potentially create more real debt. (By purchasing them for more then they are actually worth, they would in essence be creating dollars…) this would be inflationary. Until this happens, wealth is still being destroyed (if you owned Bear Stearns Stock… your wealth was destroyed).

I think the price increases we are seeing come not from the creation of dollars, but from the devaluation of the dollars currently in existance. Price increases do not in themselves constitute inflation, and in my thoughts may be more based on deflationary pressure and the consequent reactions to that pressure.

Flywestcoast

[USMCBunny]

I don’t claim to be very smart on macro econonics, like a lot of lurkers here, I learn from reading this and a couple other blogs.

The best simple definitions of Inflation / Deflation that I have read are simply that Inflation is the creation of wealth, and that deflation is the destruction of wealth. Wealth- obviously can be defined as actual $$$’s (paper or Electronic, “Stuff” (material goods) or even tranferable Debt (The future value of debt anyway … to whomever is getting the monthly payment).

The bursting of the bubble will lead to the destruction of close to a trillion dollars before it is over with. This trillion dollars (A number you could certainly argue up or down) was the notional value of home equity gains and may or may not have been turned into other forms of wealth via HELOC and refinance. Either way – this wealth is rapidly evaporating… it will be gone. This is the destruction of wealth and must be viewed as deflationary.

The inflation / creation of wealth already happened from 2000-2005 via all the paper gains. We are now deflating.

If the US Govt actually buys MBS mortgage debt (which I think would require a change in federal law) – they could potentially create more real debt. (By purchasing them for more then they are actually worth, they would in essence be creating dollars…) this would be inflationary. Until this happens, wealth is still being destroyed (if you owned Bear Stearns Stock… your wealth was destroyed).

I think the price increases we are seeing come not from the creation of dollars, but from the devaluation of the dollars currently in existance. Price increases do not in themselves constitute inflation, and in my thoughts may be more based on deflationary pressure and the consequent reactions to that pressure.

Flywestcoast

[USMCBunny]

I don’t claim to be very smart on macro econonics, like a lot of lurkers here, I learn from reading this and a couple other blogs.

The best simple definitions of Inflation / Deflation that I have read are simply that Inflation is the creation of wealth, and that deflation is the destruction of wealth. Wealth- obviously can be defined as actual $$$’s (paper or Electronic, “Stuff” (material goods) or even tranferable Debt (The future value of debt anyway … to whomever is getting the monthly payment).

The bursting of the bubble will lead to the destruction of close to a trillion dollars before it is over with. This trillion dollars (A number you could certainly argue up or down) was the notional value of home equity gains and may or may not have been turned into other forms of wealth via HELOC and refinance. Either way – this wealth is rapidly evaporating… it will be gone. This is the destruction of wealth and must be viewed as deflationary.

The inflation / creation of wealth already happened from 2000-2005 via all the paper gains. We are now deflating.

If the US Govt actually buys MBS mortgage debt (which I think would require a change in federal law) – they could potentially create more real debt. (By purchasing them for more then they are actually worth, they would in essence be creating dollars…) this would be inflationary. Until this happens, wealth is still being destroyed (if you owned Bear Stearns Stock… your wealth was destroyed).

I think the price increases we are seeing come not from the creation of dollars, but from the devaluation of the dollars currently in existance. Price increases do not in themselves constitute inflation, and in my thoughts may be more based on deflationary pressure and the consequent reactions to that pressure.

Flywestcoast

[USMCBunny]

I don’t claim to be very smart on macro econonics, like a lot of lurkers here, I learn from reading this and a couple other blogs.

The best simple definitions of Inflation / Deflation that I have read are simply that Inflation is the creation of wealth, and that deflation is the destruction of wealth. Wealth- obviously can be defined as actual $$$’s (paper or Electronic, “Stuff” (material goods) or even tranferable Debt (The future value of debt anyway … to whomever is getting the monthly payment).

The bursting of the bubble will lead to the destruction of close to a trillion dollars before it is over with. This trillion dollars (A number you could certainly argue up or down) was the notional value of home equity gains and may or may not have been turned into other forms of wealth via HELOC and refinance. Either way – this wealth is rapidly evaporating… it will be gone. This is the destruction of wealth and must be viewed as deflationary.

The inflation / creation of wealth already happened from 2000-2005 via all the paper gains. We are now deflating.

If the US Govt actually buys MBS mortgage debt (which I think would require a change in federal law) – they could potentially create more real debt. (By purchasing them for more then they are actually worth, they would in essence be creating dollars…) this would be inflationary. Until this happens, wealth is still being destroyed (if you owned Bear Stearns Stock… your wealth was destroyed).

I think the price increases we are seeing come not from the creation of dollars, but from the devaluation of the dollars currently in existance. Price increases do not in themselves constitute inflation, and in my thoughts may be more based on deflationary pressure and the consequent reactions to that pressure.

Flywestcoast

[stansd]

Apologize if this has been mentioned before, but I remain a bit confused and find this thread fascinating.

It seems like those talking about deflation are referring to asset price deflation wheras the inflationistas are referring to consumer prices. In my mind, there is a good chance of both of these occurring simultaneously-the recession causes asset price deflation while the commodities boom, emerging economy demand, and dollar devaluation cause consumer inflation.

End result is stagflation, deflation (asset), and inflation (consumer prices) simultaneously. End effect is boomers don’t have enough to retire (this is already true, but it gets worse), but those of us in the younger set are better positioned on investments since prices are reasonable, but lose a few notches on standard of living as wages don’t keep up with the prices of the stuff we buy.

Thoughts?

Stan

[stansd]

Apologize if this has been mentioned before, but I remain a bit confused and find this thread fascinating.

It seems like those talking about deflation are referring to asset price deflation wheras the inflationistas are referring to consumer prices. In my mind, there is a good chance of both of these occurring simultaneously-the recession causes asset price deflation while the commodities boom, emerging economy demand, and dollar devaluation cause consumer inflation.

End result is stagflation, deflation (asset), and inflation (consumer prices) simultaneously. End effect is boomers don’t have enough to retire (this is already true, but it gets worse), but those of us in the younger set are better positioned on investments since prices are reasonable, but lose a few notches on standard of living as wages don’t keep up with the prices of the stuff we buy.

Thoughts?

Stan

[stansd]

Apologize if this has been mentioned before, but I remain a bit confused and find this thread fascinating.

It seems like those talking about deflation are referring to asset price deflation wheras the inflationistas are referring to consumer prices. In my mind, there is a good chance of both of these occurring simultaneously-the recession causes asset price deflation while the commodities boom, emerging economy demand, and dollar devaluation cause consumer inflation.

End result is stagflation, deflation (asset), and inflation (consumer prices) simultaneously. End effect is boomers don’t have enough to retire (this is already true, but it gets worse), but those of us in the younger set are better positioned on investments since prices are reasonable, but lose a few notches on standard of living as wages don’t keep up with the prices of the stuff we buy.

Thoughts?

Stan

[stansd]

Apologize if this has been mentioned before, but I remain a bit confused and find this thread fascinating.

It seems like those talking about deflation are referring to asset price deflation wheras the inflationistas are referring to consumer prices. In my mind, there is a good chance of both of these occurring simultaneously-the recession causes asset price deflation while the commodities boom, emerging economy demand, and dollar devaluation cause consumer inflation.

End result is stagflation, deflation (asset), and inflation (consumer prices) simultaneously. End effect is boomers don’t have enough to retire (this is already true, but it gets worse), but those of us in the younger set are better positioned on investments since prices are reasonable, but lose a few notches on standard of living as wages don’t keep up with the prices of the stuff we buy.

Thoughts?

Stan

[Coronita]

Doesn't help that China  keeps pegging the  yuan to the dollar and that companies like Dell keep shifting to components made there.

 

Editorial notes: As if Dell's desktops/laptops weren't already POS's….Dell can now go from  crappy desktops and laptops to even CRAPIER desktop and laptops. Sounds like a winning proposition to me. What now, "Walmart inside" stickers on the laptops?

 

 

 

 Dell to buy $52 bln components from China
Thursday March 20, 10:10 am ET
By Kirby Chien

BEIJING (Reuters) – Dell Inc (NasdaqGS:DELL – News) plans to buy $23 billion of components from China this year and $29 billion in 2009, helping it reduce costs while the company's main market, the United States, is facing recession.

The commoditization of computer hardware means competition is more a function of price and efficiency than quality and branding, making China a favorite place to source a broad range of goods, including electronic components.

"China is critical to Dell's global supply chain," founder and Chief Executive Michael Dell told reporters on Thursday.

"Dell will purchase $70 billion of computer-related supplies and equipment from China," he said, referring to total purchases over the 2007-2009 period.

The world's second-largest personal computer maker, Dell is far from alone in looking to China to reduce manufacturing costs and remain competitive.

Last November, Cisco Systems Inc (NasdaqGS:CSCO – News) said it would almost double its purchasing from Chinese suppliers over five years to $16 billion.

Cisco is the biggest maker of routers, switches and other equipment that make up the Internet.

Hardware makers such as Dell, Cisco and Hewlett-Packard (NYSE:HPQ – News; HP) could be hit hard by a U.S. economic downturn, Dell even more so because it relies on the U.S. for about half of its revenue, a much higher proportion than larger rival HP.

That makes China's role as a customer equally important to Dell, which saw a 54 percent rise in unit sales on the mainland during its last financial quarter.

"China is one of the most dynamic and fastest-growing economies in the world, and we've made significant business and social investments here in the past 10 years," said Michael Dell.

Dell's presence in China includes two manufacturing operations in the south, a product design centre in Shanghai — one of the company's largest — and a sales support centre in the north east for customers in Japan and Korea.

The company lost top market-share spot to HP in 2006 as consumers favored buying notebook PCs in stores, leading it to abandon last year a long-standing direct-only sales model.

It now sells PCs in retailers such as Wal-Mart Stores Inc (NYSE:WMT – News), Carrefour SA (Paris:CARR.PA – News) in Europe and China's GOME Electrical Appliances Holding Ltd (HKSE:0493.HK – News).

Dell was speaking at an event to celebrate 10 years of operations in China.

($=7.06 yuan)

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

Doesn't help that China  keeps pegging the  yuan to the dollar and that companies like Dell keep shifting to components made there.

 

Editorial notes: As if Dell's desktops/laptops weren't already POS's….Dell can now go from  crappy desktops and laptops to even CRAPIER desktop and laptops. Sounds like a winning proposition to me. What now, "Walmart inside" stickers on the laptops?

 

 

 

 Dell to buy $52 bln components from China
Thursday March 20, 10:10 am ET
By Kirby Chien

BEIJING (Reuters) – Dell Inc (NasdaqGS:DELL – News) plans to buy $23 billion of components from China this year and $29 billion in 2009, helping it reduce costs while the company's main market, the United States, is facing recession.

The commoditization of computer hardware means competition is more a function of price and efficiency than quality and branding, making China a favorite place to source a broad range of goods, including electronic components.

"China is critical to Dell's global supply chain," founder and Chief Executive Michael Dell told reporters on Thursday.

"Dell will purchase $70 billion of computer-related supplies and equipment from China," he said, referring to total purchases over the 2007-2009 period.

The world's second-largest personal computer maker, Dell is far from alone in looking to China to reduce manufacturing costs and remain competitive.

Last November, Cisco Systems Inc (NasdaqGS:CSCO – News) said it would almost double its purchasing from Chinese suppliers over five years to $16 billion.

Cisco is the biggest maker of routers, switches and other equipment that make up the Internet.

Hardware makers such as Dell, Cisco and Hewlett-Packard (NYSE:HPQ – News; HP) could be hit hard by a U.S. economic downturn, Dell even more so because it relies on the U.S. for about half of its revenue, a much higher proportion than larger rival HP.

That makes China's role as a customer equally important to Dell, which saw a 54 percent rise in unit sales on the mainland during its last financial quarter.

"China is one of the most dynamic and fastest-growing economies in the world, and we've made significant business and social investments here in the past 10 years," said Michael Dell.

Dell's presence in China includes two manufacturing operations in the south, a product design centre in Shanghai — one of the company's largest — and a sales support centre in the north east for customers in Japan and Korea.

The company lost top market-share spot to HP in 2006 as consumers favored buying notebook PCs in stores, leading it to abandon last year a long-standing direct-only sales model.

It now sells PCs in retailers such as Wal-Mart Stores Inc (NYSE:WMT – News), Carrefour SA (Paris:CARR.PA – News) in Europe and China's GOME Electrical Appliances Holding Ltd (HKSE:0493.HK – News).

Dell was speaking at an event to celebrate 10 years of operations in China.

($=7.06 yuan)

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

Doesn't help that China  keeps pegging the  yuan to the dollar and that companies like Dell keep shifting to components made there.

 

Editorial notes: As if Dell's desktops/laptops weren't already POS's….Dell can now go from  crappy desktops and laptops to even CRAPIER desktop and laptops. Sounds like a winning proposition to me. What now, "Walmart inside" stickers on the laptops?

 

 

 

 Dell to buy $52 bln components from China
Thursday March 20, 10:10 am ET
By Kirby Chien

BEIJING (Reuters) – Dell Inc (NasdaqGS:DELL – News) plans to buy $23 billion of components from China this year and $29 billion in 2009, helping it reduce costs while the company's main market, the United States, is facing recession.

The commoditization of computer hardware means competition is more a function of price and efficiency than quality and branding, making China a favorite place to source a broad range of goods, including electronic components.

"China is critical to Dell's global supply chain," founder and Chief Executive Michael Dell told reporters on Thursday.

"Dell will purchase $70 billion of computer-related supplies and equipment from China," he said, referring to total purchases over the 2007-2009 period.

The world's second-largest personal computer maker, Dell is far from alone in looking to China to reduce manufacturing costs and remain competitive.

Last November, Cisco Systems Inc (NasdaqGS:CSCO – News) said it would almost double its purchasing from Chinese suppliers over five years to $16 billion.

Cisco is the biggest maker of routers, switches and other equipment that make up the Internet.

Hardware makers such as Dell, Cisco and Hewlett-Packard (NYSE:HPQ – News; HP) could be hit hard by a U.S. economic downturn, Dell even more so because it relies on the U.S. for about half of its revenue, a much higher proportion than larger rival HP.

That makes China's role as a customer equally important to Dell, which saw a 54 percent rise in unit sales on the mainland during its last financial quarter.

"China is one of the most dynamic and fastest-growing economies in the world, and we've made significant business and social investments here in the past 10 years," said Michael Dell.

Dell's presence in China includes two manufacturing operations in the south, a product design centre in Shanghai — one of the company's largest — and a sales support centre in the north east for customers in Japan and Korea.

The company lost top market-share spot to HP in 2006 as consumers favored buying notebook PCs in stores, leading it to abandon last year a long-standing direct-only sales model.

It now sells PCs in retailers such as Wal-Mart Stores Inc (NYSE:WMT – News), Carrefour SA (Paris:CARR.PA – News) in Europe and China's GOME Electrical Appliances Holding Ltd (HKSE:0493.HK – News).

Dell was speaking at an event to celebrate 10 years of operations in China.

($=7.06 yuan)

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

Doesn't help that China  keeps pegging the  yuan to the dollar and that companies like Dell keep shifting to components made there.

 

Editorial notes: As if Dell's desktops/laptops weren't already POS's….Dell can now go from  crappy desktops and laptops to even CRAPIER desktop and laptops. Sounds like a winning proposition to me. What now, "Walmart inside" stickers on the laptops?

 

 

 

 Dell to buy $52 bln components from China
Thursday March 20, 10:10 am ET
By Kirby Chien

BEIJING (Reuters) – Dell Inc (NasdaqGS:DELL – News) plans to buy $23 billion of components from China this year and $29 billion in 2009, helping it reduce costs while the company's main market, the United States, is facing recession.

The commoditization of computer hardware means competition is more a function of price and efficiency than quality and branding, making China a favorite place to source a broad range of goods, including electronic components.

"China is critical to Dell's global supply chain," founder and Chief Executive Michael Dell told reporters on Thursday.

"Dell will purchase $70 billion of computer-related supplies and equipment from China," he said, referring to total purchases over the 2007-2009 period.

The world's second-largest personal computer maker, Dell is far from alone in looking to China to reduce manufacturing costs and remain competitive.

Last November, Cisco Systems Inc (NasdaqGS:CSCO – News) said it would almost double its purchasing from Chinese suppliers over five years to $16 billion.

Cisco is the biggest maker of routers, switches and other equipment that make up the Internet.

Hardware makers such as Dell, Cisco and Hewlett-Packard (NYSE:HPQ – News; HP) could be hit hard by a U.S. economic downturn, Dell even more so because it relies on the U.S. for about half of its revenue, a much higher proportion than larger rival HP.

That makes China's role as a customer equally important to Dell, which saw a 54 percent rise in unit sales on the mainland during its last financial quarter.

"China is one of the most dynamic and fastest-growing economies in the world, and we've made significant business and social investments here in the past 10 years," said Michael Dell.

Dell's presence in China includes two manufacturing operations in the south, a product design centre in Shanghai — one of the company's largest — and a sales support centre in the north east for customers in Japan and Korea.

The company lost top market-share spot to HP in 2006 as consumers favored buying notebook PCs in stores, leading it to abandon last year a long-standing direct-only sales model.

It now sells PCs in retailers such as Wal-Mart Stores Inc (NYSE:WMT – News), Carrefour SA (Paris:CARR.PA – News) in Europe and China's GOME Electrical Appliances Holding Ltd (HKSE:0493.HK – News).

Dell was speaking at an event to celebrate 10 years of operations in China.

($=7.06 yuan)

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[DWCAP]

I am feeling you on that one FLU. Great, the computer only costs $500, but it is only gonna last me till 1 day after the 6 month warrenty ends.
Why is it that every company seems to scream from the highest mountain top all about how they source in China. There stuff sucks, even if it is cheap. And Wall street seems to reward them for this. What a load of crap. It is like a buzz word to investors.

Wall Street: “WHat are you doing to keep costs down?”
Company: “China”
Stock price goes up 5%

Wall street: “what are you doing to expand?”
Company: “China”
Stock pice goes up 5%

Wall Street “what is the future of your company?”
Company: “China”
Stock price goes up 5%

Customers: “Why is this new widget such a piece?”
Wall Street: “ask the company”
Company: “tough markets means that nonvital secotors such as Research, Quality control and Customer service have been hurt yada yada yada….”
Real Reason : “China”.
Stock price doesnt move an inch.

All I have to say is that the day the yuan isnt dollar pegged is the day before alot of senior managers are gonna be on the hot seat as the quality went out the window, the customers are pissed, and the shit ante cheap anymore. Notice how the whole currency adjustment thing for China went out the window with the current downturn?

Wall Street to Fed: “What are you doing to control inflation?”
Fed: “China”

[Arty]

I don’t know…the best laptop I want to buy is a Dell XPS1730 and Alienware M15x or M17x (not out yet). They aren’t cheap at all…:( And they are all from Dell.

Today’s computer cost as low as few hundred dollars to over 8,000. It all depends on what you want and have nothing to do with cheap part from China. The two laptops I mentioned above are probably all made in China cost at least 3000 minimum.

[Arty]

I don’t know…the best laptop I want to buy is a Dell XPS1730 and Alienware M15x or M17x (not out yet). They aren’t cheap at all…:( And they are all from Dell.

Today’s computer cost as low as few hundred dollars to over 8,000. It all depends on what you want and have nothing to do with cheap part from China. The two laptops I mentioned above are probably all made in China cost at least 3000 minimum.

[Arty]

I don’t know…the best laptop I want to buy is a Dell XPS1730 and Alienware M15x or M17x (not out yet). They aren’t cheap at all…:( And they are all from Dell.

Today’s computer cost as low as few hundred dollars to over 8,000. It all depends on what you want and have nothing to do with cheap part from China. The two laptops I mentioned above are probably all made in China cost at least 3000 minimum.

[Arty]

I don’t know…the best laptop I want to buy is a Dell XPS1730 and Alienware M15x or M17x (not out yet). They aren’t cheap at all…:( And they are all from Dell.

Today’s computer cost as low as few hundred dollars to over 8,000. It all depends on what you want and have nothing to do with cheap part from China. The two laptops I mentioned above are probably all made in China cost at least 3000 minimum.

[Arty]

I don’t know…the best laptop I want to buy is a Dell XPS1730 and Alienware M15x or M17x (not out yet). They aren’t cheap at all…:( And they are all from Dell.

Today’s computer cost as low as few hundred dollars to over 8,000. It all depends on what you want and have nothing to do with cheap part from China. The two laptops I mentioned above are probably all made in China cost at least 3000 minimum.

[DWCAP]

I am feeling you on that one FLU. Great, the computer only costs $500, but it is only gonna last me till 1 day after the 6 month warrenty ends.
Why is it that every company seems to scream from the highest mountain top all about how they source in China. There stuff sucks, even if it is cheap. And Wall street seems to reward them for this. What a load of crap. It is like a buzz word to investors.

Wall Street: “WHat are you doing to keep costs down?”
Company: “China”
Stock price goes up 5%

Wall street: “what are you doing to expand?”
Company: “China”
Stock pice goes up 5%

Wall Street “what is the future of your company?”
Company: “China”
Stock price goes up 5%

Customers: “Why is this new widget such a piece?”
Wall Street: “ask the company”
Company: “tough markets means that nonvital secotors such as Research, Quality control and Customer service have been hurt yada yada yada….”
Real Reason : “China”.
Stock price doesnt move an inch.

All I have to say is that the day the yuan isnt dollar pegged is the day before alot of senior managers are gonna be on the hot seat as the quality went out the window, the customers are pissed, and the shit ante cheap anymore. Notice how the whole currency adjustment thing for China went out the window with the current downturn?

Wall Street to Fed: “What are you doing to control inflation?”
Fed: “China”

[DWCAP]

I am feeling you on that one FLU. Great, the computer only costs $500, but it is only gonna last me till 1 day after the 6 month warrenty ends.
Why is it that every company seems to scream from the highest mountain top all about how they source in China. There stuff sucks, even if it is cheap. And Wall street seems to reward them for this. What a load of crap. It is like a buzz word to investors.

Wall Street: “WHat are you doing to keep costs down?”
Company: “China”
Stock price goes up 5%

Wall street: “what are you doing to expand?”
Company: “China”
Stock pice goes up 5%

Wall Street “what is the future of your company?”
Company: “China”
Stock price goes up 5%

Customers: “Why is this new widget such a piece?”
Wall Street: “ask the company”
Company: “tough markets means that nonvital secotors such as Research, Quality control and Customer service have been hurt yada yada yada….”
Real Reason : “China”.
Stock price doesnt move an inch.

All I have to say is that the day the yuan isnt dollar pegged is the day before alot of senior managers are gonna be on the hot seat as the quality went out the window, the customers are pissed, and the shit ante cheap anymore. Notice how the whole currency adjustment thing for China went out the window with the current downturn?

Wall Street to Fed: “What are you doing to control inflation?”
Fed: “China”

[DWCAP]

I am feeling you on that one FLU. Great, the computer only costs $500, but it is only gonna last me till 1 day after the 6 month warrenty ends.
Why is it that every company seems to scream from the highest mountain top all about how they source in China. There stuff sucks, even if it is cheap. And Wall street seems to reward them for this. What a load of crap. It is like a buzz word to investors.

Wall Street: “WHat are you doing to keep costs down?”
Company: “China”
Stock price goes up 5%

Wall street: “what are you doing to expand?”
Company: “China”
Stock pice goes up 5%

Wall Street “what is the future of your company?”
Company: “China”
Stock price goes up 5%

Customers: “Why is this new widget such a piece?”
Wall Street: “ask the company”
Company: “tough markets means that nonvital secotors such as Research, Quality control and Customer service have been hurt yada yada yada….”
Real Reason : “China”.
Stock price doesnt move an inch.

All I have to say is that the day the yuan isnt dollar pegged is the day before alot of senior managers are gonna be on the hot seat as the quality went out the window, the customers are pissed, and the shit ante cheap anymore. Notice how the whole currency adjustment thing for China went out the window with the current downturn?

Wall Street to Fed: “What are you doing to control inflation?”
Fed: “China”

[DWCAP]

I am feeling you on that one FLU. Great, the computer only costs $500, but it is only gonna last me till 1 day after the 6 month warrenty ends.
Why is it that every company seems to scream from the highest mountain top all about how they source in China. There stuff sucks, even if it is cheap. And Wall street seems to reward them for this. What a load of crap. It is like a buzz word to investors.

Wall Street: “WHat are you doing to keep costs down?”
Company: “China”
Stock price goes up 5%

Wall street: “what are you doing to expand?”
Company: “China”
Stock pice goes up 5%

Wall Street “what is the future of your company?”
Company: “China”
Stock price goes up 5%

Customers: “Why is this new widget such a piece?”
Wall Street: “ask the company”
Company: “tough markets means that nonvital secotors such as Research, Quality control and Customer service have been hurt yada yada yada….”
Real Reason : “China”.
Stock price doesnt move an inch.

All I have to say is that the day the yuan isnt dollar pegged is the day before alot of senior managers are gonna be on the hot seat as the quality went out the window, the customers are pissed, and the shit ante cheap anymore. Notice how the whole currency adjustment thing for China went out the window with the current downturn?

Wall Street to Fed: “What are you doing to control inflation?”
Fed: “China”

[Author]

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