Visual Inflation/Deflation For Dummies

[an]

[quote=CA renter] Our current problems are a result of too much leverage and the resulting elevated prices. Deflation would solve those problems very effectively.[/quote]
Wouldn’t inflation solve the problem as well? If everyone make 2x more than what they do today, wouldn’t the debt they have current be much more manageable?

[CA renter]

[quote=AN][quote=CA renter] Our current problems are a result of too much leverage and the resulting elevated prices. Deflation would solve those problems very effectively.[/quote]
Wouldn’t inflation solve the problem as well? If everyone make 2x more than what they do today, wouldn’t the debt they have current be much more manageable?[/quote]

You’re making the assumption that “inflation” will show up in wages. It doesn’t have to work that way. Inflation can go anywhere, but with globalization and the decimation of unions (who were the primary drivers behind the wage increases in the 70s), there is absolutely no reason to think that wages will rise. What’s more likely is that asset prices rise (because investors will invest in hard assets/commodities to protect their wealth) while workers’ wages stagnate or decline. Workers would lose purchasing power while the wealthy elite see their relative wealth grow with inflation. It’s really the worst of all possibilities, IMHO, and why I’m such a fan of deflation.

Deflation is the only thing that can help reverse the wealth disparity that has been caused by decades of inflation and globalization. If we’re ever to achieve the greatness that we once had, we need to reward *work and productivity* not gambling/”investing”. We can do this by increasing taxes on investment income while lowering taxes on wages. We should also eliminate “free trade” and engage only in fair trade with countries who have the same environmental and worker protections that we do. We need to allow risk and reward to be aligned by requiring corporations to have their top compensation tied to the compensation of all their workers. If the executives don’t like it, they can throw off the reins of corporate protection and take all the risks personally; that’s how they can *earn* the rewards they seem to think they deserve.

An interesting read:

http://www.slate.com/id/2266025/entry/2266026

Note on the graph how wealth/income inequality rises during inflationary times and falls during deflationary times.

IMHO, we are being fed a pack of lies about inflation/deflation (by the wealthy who control the media and political battleground — “Dems vs. Repubs/left vs. right” are simply meant to divide and distract us). We’re told to believe that deflation is the bigger worry when (IMO) inflation is what kills us.

[CA renter]

[quote=AN][quote=CA renter] Our current problems are a result of too much leverage and the resulting elevated prices. Deflation would solve those problems very effectively.[/quote]
Wouldn’t inflation solve the problem as well? If everyone make 2x more than what they do today, wouldn’t the debt they have current be much more manageable?[/quote]

You’re making the assumption that “inflation” will show up in wages. It doesn’t have to work that way. Inflation can go anywhere, but with globalization and the decimation of unions (who were the primary drivers behind the wage increases in the 70s), there is absolutely no reason to think that wages will rise. What’s more likely is that asset prices rise (because investors will invest in hard assets/commodities to protect their wealth) while workers’ wages stagnate or decline. Workers would lose purchasing power while the wealthy elite see their relative wealth grow with inflation. It’s really the worst of all possibilities, IMHO, and why I’m such a fan of deflation.

Deflation is the only thing that can help reverse the wealth disparity that has been caused by decades of inflation and globalization. If we’re ever to achieve the greatness that we once had, we need to reward *work and productivity* not gambling/”investing”. We can do this by increasing taxes on investment income while lowering taxes on wages. We should also eliminate “free trade” and engage only in fair trade with countries who have the same environmental and worker protections that we do. We need to allow risk and reward to be aligned by requiring corporations to have their top compensation tied to the compensation of all their workers. If the executives don’t like it, they can throw off the reins of corporate protection and take all the risks personally; that’s how they can *earn* the rewards they seem to think they deserve.

An interesting read:

http://www.slate.com/id/2266025/entry/2266026

Note on the graph how wealth/income inequality rises during inflationary times and falls during deflationary times.

IMHO, we are being fed a pack of lies about inflation/deflation (by the wealthy who control the media and political battleground — “Dems vs. Repubs/left vs. right” are simply meant to divide and distract us). We’re told to believe that deflation is the bigger worry when (IMO) inflation is what kills us.

[CA renter]

[quote=AN][quote=CA renter] Our current problems are a result of too much leverage and the resulting elevated prices. Deflation would solve those problems very effectively.[/quote]
Wouldn’t inflation solve the problem as well? If everyone make 2x more than what they do today, wouldn’t the debt they have current be much more manageable?[/quote]

You’re making the assumption that “inflation” will show up in wages. It doesn’t have to work that way. Inflation can go anywhere, but with globalization and the decimation of unions (who were the primary drivers behind the wage increases in the 70s), there is absolutely no reason to think that wages will rise. What’s more likely is that asset prices rise (because investors will invest in hard assets/commodities to protect their wealth) while workers’ wages stagnate or decline. Workers would lose purchasing power while the wealthy elite see their relative wealth grow with inflation. It’s really the worst of all possibilities, IMHO, and why I’m such a fan of deflation.

Deflation is the only thing that can help reverse the wealth disparity that has been caused by decades of inflation and globalization. If we’re ever to achieve the greatness that we once had, we need to reward *work and productivity* not gambling/”investing”. We can do this by increasing taxes on investment income while lowering taxes on wages. We should also eliminate “free trade” and engage only in fair trade with countries who have the same environmental and worker protections that we do. We need to allow risk and reward to be aligned by requiring corporations to have their top compensation tied to the compensation of all their workers. If the executives don’t like it, they can throw off the reins of corporate protection and take all the risks personally; that’s how they can *earn* the rewards they seem to think they deserve.

An interesting read:

http://www.slate.com/id/2266025/entry/2266026

Note on the graph how wealth/income inequality rises during inflationary times and falls during deflationary times.

IMHO, we are being fed a pack of lies about inflation/deflation (by the wealthy who control the media and political battleground — “Dems vs. Repubs/left vs. right” are simply meant to divide and distract us). We’re told to believe that deflation is the bigger worry when (IMO) inflation is what kills us.

[CA renter]

[quote=AN][quote=CA renter] Our current problems are a result of too much leverage and the resulting elevated prices. Deflation would solve those problems very effectively.[/quote]
Wouldn’t inflation solve the problem as well? If everyone make 2x more than what they do today, wouldn’t the debt they have current be much more manageable?[/quote]

You’re making the assumption that “inflation” will show up in wages. It doesn’t have to work that way. Inflation can go anywhere, but with globalization and the decimation of unions (who were the primary drivers behind the wage increases in the 70s), there is absolutely no reason to think that wages will rise. What’s more likely is that asset prices rise (because investors will invest in hard assets/commodities to protect their wealth) while workers’ wages stagnate or decline. Workers would lose purchasing power while the wealthy elite see their relative wealth grow with inflation. It’s really the worst of all possibilities, IMHO, and why I’m such a fan of deflation.

Deflation is the only thing that can help reverse the wealth disparity that has been caused by decades of inflation and globalization. If we’re ever to achieve the greatness that we once had, we need to reward *work and productivity* not gambling/”investing”. We can do this by increasing taxes on investment income while lowering taxes on wages. We should also eliminate “free trade” and engage only in fair trade with countries who have the same environmental and worker protections that we do. We need to allow risk and reward to be aligned by requiring corporations to have their top compensation tied to the compensation of all their workers. If the executives don’t like it, they can throw off the reins of corporate protection and take all the risks personally; that’s how they can *earn* the rewards they seem to think they deserve.

An interesting read:

http://www.slate.com/id/2266025/entry/2266026

Note on the graph how wealth/income inequality rises during inflationary times and falls during deflationary times.

IMHO, we are being fed a pack of lies about inflation/deflation (by the wealthy who control the media and political battleground — “Dems vs. Repubs/left vs. right” are simply meant to divide and distract us). We’re told to believe that deflation is the bigger worry when (IMO) inflation is what kills us.

[CA renter]

[quote=AN][quote=CA renter] Our current problems are a result of too much leverage and the resulting elevated prices. Deflation would solve those problems very effectively.[/quote]
Wouldn’t inflation solve the problem as well? If everyone make 2x more than what they do today, wouldn’t the debt they have current be much more manageable?[/quote]

You’re making the assumption that “inflation” will show up in wages. It doesn’t have to work that way. Inflation can go anywhere, but with globalization and the decimation of unions (who were the primary drivers behind the wage increases in the 70s), there is absolutely no reason to think that wages will rise. What’s more likely is that asset prices rise (because investors will invest in hard assets/commodities to protect their wealth) while workers’ wages stagnate or decline. Workers would lose purchasing power while the wealthy elite see their relative wealth grow with inflation. It’s really the worst of all possibilities, IMHO, and why I’m such a fan of deflation.

Deflation is the only thing that can help reverse the wealth disparity that has been caused by decades of inflation and globalization. If we’re ever to achieve the greatness that we once had, we need to reward *work and productivity* not gambling/”investing”. We can do this by increasing taxes on investment income while lowering taxes on wages. We should also eliminate “free trade” and engage only in fair trade with countries who have the same environmental and worker protections that we do. We need to allow risk and reward to be aligned by requiring corporations to have their top compensation tied to the compensation of all their workers. If the executives don’t like it, they can throw off the reins of corporate protection and take all the risks personally; that’s how they can *earn* the rewards they seem to think they deserve.

An interesting read:

http://www.slate.com/id/2266025/entry/2266026

Note on the graph how wealth/income inequality rises during inflationary times and falls during deflationary times.

IMHO, we are being fed a pack of lies about inflation/deflation (by the wealthy who control the media and political battleground — “Dems vs. Repubs/left vs. right” are simply meant to divide and distract us). We’re told to believe that deflation is the bigger worry when (IMO) inflation is what kills us.

[Nor-LA-SD-guy]

Or you could be like China,

When they announce there will if 5% inflation next month, you can believe them.

hmmm maybe mailing checks would work.

[Nor-LA-SD-guy]

Or you could be like China,

When they announce there will if 5% inflation next month, you can believe them.

hmmm maybe mailing checks would work.

[Nor-LA-SD-guy]

Or you could be like China,

When they announce there will if 5% inflation next month, you can believe them.

hmmm maybe mailing checks would work.

[Nor-LA-SD-guy]

Or you could be like China,

When they announce there will if 5% inflation next month, you can believe them.

hmmm maybe mailing checks would work.

[Nor-LA-SD-guy]

Or you could be like China,

When they announce there will if 5% inflation next month, you can believe them.

hmmm maybe mailing checks would work.

[Arraya]

The system does not work well going in reverse. It’s kind of a grow or die thing. Like sharks have to keep moving to live, the monetary system as to keep growing. After decades of inflation-dependent financial ‘innovations’, balance sheets would implode with deflation. Trillions of virtual wealth gone in the blink of an eye. Banks still have only recognized a fraction of their loses with the first round of deflation. A second would do them in. We lost 90% of the banks in the US during the first depression. Also, a self-reinforcing collective psychology comes along with it. People pull their money out of markets, don’t take on debt, etc… -exacerbating the negative effects. They treat deflation like a national security issue for a reason, because it kind of is.

Not that we can perpetually grow our debt loads ad infinitum, obviously. Because, that, at some point, has an endgame as well. But, I think, TPTB may believe it so. It’s hard to tell the degrees of delusion, economic-anosognosia and professional lying within officialdom, but you can be sure, they are all present.

[Arraya]

The system does not work well going in reverse. It’s kind of a grow or die thing. Like sharks have to keep moving to live, the monetary system as to keep growing. After decades of inflation-dependent financial ‘innovations’, balance sheets would implode with deflation. Trillions of virtual wealth gone in the blink of an eye. Banks still have only recognized a fraction of their loses with the first round of deflation. A second would do them in. We lost 90% of the banks in the US during the first depression. Also, a self-reinforcing collective psychology comes along with it. People pull their money out of markets, don’t take on debt, etc… -exacerbating the negative effects. They treat deflation like a national security issue for a reason, because it kind of is.

Not that we can perpetually grow our debt loads ad infinitum, obviously. Because, that, at some point, has an endgame as well. But, I think, TPTB may believe it so. It’s hard to tell the degrees of delusion, economic-anosognosia and professional lying within officialdom, but you can be sure, they are all present.

[Arraya]

The system does not work well going in reverse. It’s kind of a grow or die thing. Like sharks have to keep moving to live, the monetary system as to keep growing. After decades of inflation-dependent financial ‘innovations’, balance sheets would implode with deflation. Trillions of virtual wealth gone in the blink of an eye. Banks still have only recognized a fraction of their loses with the first round of deflation. A second would do them in. We lost 90% of the banks in the US during the first depression. Also, a self-reinforcing collective psychology comes along with it. People pull their money out of markets, don’t take on debt, etc… -exacerbating the negative effects. They treat deflation like a national security issue for a reason, because it kind of is.

Not that we can perpetually grow our debt loads ad infinitum, obviously. Because, that, at some point, has an endgame as well. But, I think, TPTB may believe it so. It’s hard to tell the degrees of delusion, economic-anosognosia and professional lying within officialdom, but you can be sure, they are all present.

[Arraya]

The system does not work well going in reverse. It’s kind of a grow or die thing. Like sharks have to keep moving to live, the monetary system as to keep growing. After decades of inflation-dependent financial ‘innovations’, balance sheets would implode with deflation. Trillions of virtual wealth gone in the blink of an eye. Banks still have only recognized a fraction of their loses with the first round of deflation. A second would do them in. We lost 90% of the banks in the US during the first depression. Also, a self-reinforcing collective psychology comes along with it. People pull their money out of markets, don’t take on debt, etc… -exacerbating the negative effects. They treat deflation like a national security issue for a reason, because it kind of is.

Not that we can perpetually grow our debt loads ad infinitum, obviously. Because, that, at some point, has an endgame as well. But, I think, TPTB may believe it so. It’s hard to tell the degrees of delusion, economic-anosognosia and professional lying within officialdom, but you can be sure, they are all present.

[Author]

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