dtblount

Private Equity Deals Wane

EE, you need to sharpen up your basic economic knowledge. A stable monetary policy is good for the US in the sense that we do not produce every single thing we need domestically. If the dollar were to appreciate sharply for an extended period of time, it would hurt the US economy because exports would fall dramatically. Deflation also destroys the value of fixed assets, such as real estate...as well as valuations in the equity markets. The end result of deflation is simple - economic depression.

As for inflation, it is necessary. Low and controlled inflation is a byproduct of a healthy economy. It allows for a "cushion" for wages to be cut instead of jobs eliminated altogether. One of the basic principles of the Phillips Curve is that the higher unemployment is a result of extremely low inflation.

Essentially, your comments show your lack of knowledge on economic policy, so there really isn't much sense in attempting rebuttals...

neeb??, dialogues are indeed great. You pose an interesting question...which holds a great deal of truth. However, when the economy tightens up, people begin complaining about grocery bills and stop shopping at Whole Foods/Fresh Market in lieu of Costco/Walmart. In that sense, costs are controlled before expenditures are even made...


Cheers