Home › Forums › Financial Markets/Economics › Paying Attention?
- This topic has 315 replies, 16 voices, and was last updated 13 years, 4 months ago by
CA renter.
-
AuthorPosts
-
August 5, 2011 at 5:53 AM #716329August 5, 2011 at 2:01 PM #715293
CA renter
Participant[quote=Arraya][quote=CA renter]
Which is why QE3 will only make matters worse.[/quote]
Well, it will make some things worse. It certainly won’t fix long term structural problems that absolutely need to be addressed. Though, it does stave off a deflationary collapse. Which, uncontrolled, is the sum of all fears for TPTB – because it would be revolutionary.[/quote]
IMHO, deflation would help those who earn wages, while hurting those who own assets. It would reverse a lot of the damage that’s been done by the growing wealth/income gap between labor and capital, which is why I favor it.
I don’t believe in the “deflationary death spiral” myth. Deflation is the means of correcting gross imbalances in the economy, and when it’s unwound, stabilization will occur, and then real, sustainable growth (or a healthy, stable economy…”growth,” which tends to consist mostly asset inflation as of late, isn’t always a good thing) can emerge.
August 5, 2011 at 2:01 PM #715383Participant[quote=Arraya][quote=CA renter]
Which is why QE3 will only make matters worse.[/quote]
Well, it will make some things worse. It certainly won’t fix long term structural problems that absolutely need to be addressed. Though, it does stave off a deflationary collapse. Which, uncontrolled, is the sum of all fears for TPTB – because it would be revolutionary.[/quote]
IMHO, deflation would help those who earn wages, while hurting those who own assets. It would reverse a lot of the damage that’s been done by the growing wealth/income gap between labor and capital, which is why I favor it.
I don’t believe in the “deflationary death spiral” myth. Deflation is the means of correcting gross imbalances in the economy, and when it’s unwound, stabilization will occur, and then real, sustainable growth (or a healthy, stable economy…”growth,” which tends to consist mostly asset inflation as of late, isn’t always a good thing) can emerge.
August 5, 2011 at 2:01 PM #715985Participant[quote=Arraya][quote=CA renter]
Which is why QE3 will only make matters worse.[/quote]
Well, it will make some things worse. It certainly won’t fix long term structural problems that absolutely need to be addressed. Though, it does stave off a deflationary collapse. Which, uncontrolled, is the sum of all fears for TPTB – because it would be revolutionary.[/quote]
IMHO, deflation would help those who earn wages, while hurting those who own assets. It would reverse a lot of the damage that’s been done by the growing wealth/income gap between labor and capital, which is why I favor it.
I don’t believe in the “deflationary death spiral” myth. Deflation is the means of correcting gross imbalances in the economy, and when it’s unwound, stabilization will occur, and then real, sustainable growth (or a healthy, stable economy…”growth,” which tends to consist mostly asset inflation as of late, isn’t always a good thing) can emerge.
August 5, 2011 at 2:01 PM #716137Participant[quote=Arraya][quote=CA renter]
Which is why QE3 will only make matters worse.[/quote]
Well, it will make some things worse. It certainly won’t fix long term structural problems that absolutely need to be addressed. Though, it does stave off a deflationary collapse. Which, uncontrolled, is the sum of all fears for TPTB – because it would be revolutionary.[/quote]
IMHO, deflation would help those who earn wages, while hurting those who own assets. It would reverse a lot of the damage that’s been done by the growing wealth/income gap between labor and capital, which is why I favor it.
I don’t believe in the “deflationary death spiral” myth. Deflation is the means of correcting gross imbalances in the economy, and when it’s unwound, stabilization will occur, and then real, sustainable growth (or a healthy, stable economy…”growth,” which tends to consist mostly asset inflation as of late, isn’t always a good thing) can emerge.
August 5, 2011 at 2:01 PM #716499Participant[quote=Arraya][quote=CA renter]
Which is why QE3 will only make matters worse.[/quote]
Well, it will make some things worse. It certainly won’t fix long term structural problems that absolutely need to be addressed. Though, it does stave off a deflationary collapse. Which, uncontrolled, is the sum of all fears for TPTB – because it would be revolutionary.[/quote]
IMHO, deflation would help those who earn wages, while hurting those who own assets. It would reverse a lot of the damage that’s been done by the growing wealth/income gap between labor and capital, which is why I favor it.
I don’t believe in the “deflationary death spiral” myth. Deflation is the means of correcting gross imbalances in the economy, and when it’s unwound, stabilization will occur, and then real, sustainable growth (or a healthy, stable economy…”growth,” which tends to consist mostly asset inflation as of late, isn’t always a good thing) can emerge.
August 5, 2011 at 2:23 PM #715298briansd1
GuestCA renter, deflation affects wages as well.
Greece and Spain are prime examples of deflation. That’s their only way out because they can’t print money.
You might feel a little more secure because your family’s income is based on government union contracts which are hard to overturn, but deflation would affect all wage earners.
The truth is that there’s a glut of capacity out there; so there is hardly any inflation.
I content that the food inflation we have seen is due mostly to bad weather and would have occurred anyway.
It’s true that central bank liquidity benefits the top earners more. But it’s better than nothing since the liquidity loss due to credit contraction must somehow be replaced to stabilize the economy.
Since there’s no appetite for fiscal stimulus, monetary policy is the only other tool.
August 5, 2011 at 2:23 PM #715388GuestCA renter, deflation affects wages as well.
Greece and Spain are prime examples of deflation. That’s their only way out because they can’t print money.
You might feel a little more secure because your family’s income is based on government union contracts which are hard to overturn, but deflation would affect all wage earners.
The truth is that there’s a glut of capacity out there; so there is hardly any inflation.
I content that the food inflation we have seen is due mostly to bad weather and would have occurred anyway.
It’s true that central bank liquidity benefits the top earners more. But it’s better than nothing since the liquidity loss due to credit contraction must somehow be replaced to stabilize the economy.
Since there’s no appetite for fiscal stimulus, monetary policy is the only other tool.
August 5, 2011 at 2:23 PM #715990GuestCA renter, deflation affects wages as well.
Greece and Spain are prime examples of deflation. That’s their only way out because they can’t print money.
You might feel a little more secure because your family’s income is based on government union contracts which are hard to overturn, but deflation would affect all wage earners.
The truth is that there’s a glut of capacity out there; so there is hardly any inflation.
I content that the food inflation we have seen is due mostly to bad weather and would have occurred anyway.
It’s true that central bank liquidity benefits the top earners more. But it’s better than nothing since the liquidity loss due to credit contraction must somehow be replaced to stabilize the economy.
Since there’s no appetite for fiscal stimulus, monetary policy is the only other tool.
August 5, 2011 at 2:23 PM #716142GuestCA renter, deflation affects wages as well.
Greece and Spain are prime examples of deflation. That’s their only way out because they can’t print money.
You might feel a little more secure because your family’s income is based on government union contracts which are hard to overturn, but deflation would affect all wage earners.
The truth is that there’s a glut of capacity out there; so there is hardly any inflation.
I content that the food inflation we have seen is due mostly to bad weather and would have occurred anyway.
It’s true that central bank liquidity benefits the top earners more. But it’s better than nothing since the liquidity loss due to credit contraction must somehow be replaced to stabilize the economy.
Since there’s no appetite for fiscal stimulus, monetary policy is the only other tool.
August 5, 2011 at 2:23 PM #716504GuestCA renter, deflation affects wages as well.
Greece and Spain are prime examples of deflation. That’s their only way out because they can’t print money.
You might feel a little more secure because your family’s income is based on government union contracts which are hard to overturn, but deflation would affect all wage earners.
The truth is that there’s a glut of capacity out there; so there is hardly any inflation.
I content that the food inflation we have seen is due mostly to bad weather and would have occurred anyway.
It’s true that central bank liquidity benefits the top earners more. But it’s better than nothing since the liquidity loss due to credit contraction must somehow be replaced to stabilize the economy.
Since there’s no appetite for fiscal stimulus, monetary policy is the only other tool.
August 5, 2011 at 4:07 PM #715337sdduuuude
Participant[quote=Arraya][quote=CA renter]
Which is why QE3 will only make matters worse.[/quote]
Well, it will make some things worse. It certainly won’t fix long term structural problems that absolutely need to be addressed. Though, it does stave off a deflationary collapse. Which, uncontrolled, is the sum of all fears for TPTB – because it would be revolutionary.[/quote]
Not so sure it staves it off. Possible that QE1 staves it off, and maybe even QE2, but the more you go into debt, the higher your interest payments. Get the interest too high and the likelihood of the deflationary collapse increases.
I’m not a fan of either the deflationary spiral or hyper-inflation theories but I do think deflation has a bit part to play yet and could come back more than once in the next few years.
I liken this whole situation to jumping off an elevator that is going up and the top floor of the building is on fire. You have to jump or you’ll burn to death and the sooner you jump (i.e. stop stimulating), the better off you’ll be but you know the landing is gonna hurt. And if you wait, the landing hurts even more.
The more QE’s that we see, the harder it gets to pay those bills.
August 5, 2011 at 4:07 PM #715428Participant[quote=Arraya][quote=CA renter]
Which is why QE3 will only make matters worse.[/quote]
Well, it will make some things worse. It certainly won’t fix long term structural problems that absolutely need to be addressed. Though, it does stave off a deflationary collapse. Which, uncontrolled, is the sum of all fears for TPTB – because it would be revolutionary.[/quote]
Not so sure it staves it off. Possible that QE1 staves it off, and maybe even QE2, but the more you go into debt, the higher your interest payments. Get the interest too high and the likelihood of the deflationary collapse increases.
I’m not a fan of either the deflationary spiral or hyper-inflation theories but I do think deflation has a bit part to play yet and could come back more than once in the next few years.
I liken this whole situation to jumping off an elevator that is going up and the top floor of the building is on fire. You have to jump or you’ll burn to death and the sooner you jump (i.e. stop stimulating), the better off you’ll be but you know the landing is gonna hurt. And if you wait, the landing hurts even more.
The more QE’s that we see, the harder it gets to pay those bills.
August 5, 2011 at 4:07 PM #716031Participant[quote=Arraya][quote=CA renter]
Which is why QE3 will only make matters worse.[/quote]
Well, it will make some things worse. It certainly won’t fix long term structural problems that absolutely need to be addressed. Though, it does stave off a deflationary collapse. Which, uncontrolled, is the sum of all fears for TPTB – because it would be revolutionary.[/quote]
Not so sure it staves it off. Possible that QE1 staves it off, and maybe even QE2, but the more you go into debt, the higher your interest payments. Get the interest too high and the likelihood of the deflationary collapse increases.
I’m not a fan of either the deflationary spiral or hyper-inflation theories but I do think deflation has a bit part to play yet and could come back more than once in the next few years.
I liken this whole situation to jumping off an elevator that is going up and the top floor of the building is on fire. You have to jump or you’ll burn to death and the sooner you jump (i.e. stop stimulating), the better off you’ll be but you know the landing is gonna hurt. And if you wait, the landing hurts even more.
The more QE’s that we see, the harder it gets to pay those bills.
August 5, 2011 at 4:07 PM #716182Participant[quote=Arraya][quote=CA renter]
Which is why QE3 will only make matters worse.[/quote]
Well, it will make some things worse. It certainly won’t fix long term structural problems that absolutely need to be addressed. Though, it does stave off a deflationary collapse. Which, uncontrolled, is the sum of all fears for TPTB – because it would be revolutionary.[/quote]
Not so sure it staves it off. Possible that QE1 staves it off, and maybe even QE2, but the more you go into debt, the higher your interest payments. Get the interest too high and the likelihood of the deflationary collapse increases.
I’m not a fan of either the deflationary spiral or hyper-inflation theories but I do think deflation has a bit part to play yet and could come back more than once in the next few years.
I liken this whole situation to jumping off an elevator that is going up and the top floor of the building is on fire. You have to jump or you’ll burn to death and the sooner you jump (i.e. stop stimulating), the better off you’ll be but you know the landing is gonna hurt. And if you wait, the landing hurts even more.
The more QE’s that we see, the harder it gets to pay those bills.
-
AuthorPosts
- You must be logged in to reply to this topic.