carey_jim

The Deflation Debate Continues

xsuddensam:

I was thinking of rich people who spend $1,000 on a bottle of wine, $1,300 for a Mickey Mantle baseball card, and whatever it takes to get their house painted on Sunday so they can watch the football game in peace.

In the 1950s the movie star Erroll Flynn paid 100 million dollars for an uninhabited island in the Pacific ocean and paid a couple of house keepers to stay on the island full time just to keep the mansion clean and the beer cold. He planned to take his friends there for big parties but he only went there a couple of times in many years and so he sold it.

When people like that are in plentiful, prices are driven up.

Who can imagine Jesus Christ or the Buddha bidding prices up? They lived on tofu, yogurt and veggies when they could get them for nothing, and on shoots and leaves when they couldn't. And if someone asked to buy the shirt off their backs, they gave it to them instead.

The rich only care about paying a fair price because they don't want to look stupid. The poor know this and wheedle as much money out of them as they can by flattery, trickery and legerdemain.

Therefore, when the rich are in the ascendancy, prices tend to rise.

The poor cheat and bargain the hell out of each other and if they can't get the price of an item low enough so they can buy it, they come back at night and steal it or destroy it.

This behavior causes prices to fall.

Now you know the true cause of inflation and deflation.

I prefer inflation and, by the way, I'll sell you my book on the subject for $1,000 and the price is firm. Hurry while supplies last because I never bargain with time or money.