Earnings Are Horrible, But It May Not Matter [View article]
I do not believe this deflation talk. The reason OIL and commodities tanked was related to de-leveraging. It is artificial, not based on any fundamentals. The fact is, OIL is turning around, which is a base material for all other commodities. Then we can talk inflation again...
The printing of money will only make inflation matters worse .
Inflation: Is This the Real Danger? [View article]
capitalisthero,
I disagree with your statement:
"inflation is only bad for debtors..."
In reality, deflation is bad for debtors... This is because what you already owe is difficult to come by when wages drop 10%. The wage drops are due to price drops, which is caused by weaker demand.
If you have accumulated savings, deflation is good.
On Mar 29 04:37 AM capitalisthero.com wrote:
> Will someone explain to me why deflation is bad? In deflation, the > purchasing power of my wages is increased. The purchasing power > of my nest egg is increased. Food, water, shelter, and medicine > is cheaper because of deflation. > > As far as I can tell, inflation is only bad for debtors because their > real interest rate is increased. I guess that sucks for the U.S. > government since it's the biggest debtor the world has ever known. > > > Deflation = good. Inflation = bad. Buy commodities as a hedge against > inflation. Divest yourself of dollars; they will become very abundant > very soon. > > Check out my original articles at captialisthero.com
Why Our Credit Crunch Mirrors the Weimar Hyperinflation from 1919-1923 [View article]
I think it is a wealth transfer when the taxpayer is covering the losses.
Earnings Are Horrible, But It May Not Matter [View article]
The printing of money will only make inflation matters worse .
Inflation: Is This the Real Danger? [View article]
I disagree with your statement:
"inflation is only bad for debtors..."
In reality, deflation is bad for debtors... This is because what you already owe is difficult to come by when wages drop 10%. The wage drops are due to price drops, which is caused by weaker demand.
If you have accumulated savings, deflation is good.
On Mar 29 04:37 AM capitalisthero.com wrote:
> Will someone explain to me why deflation is bad? In deflation, the
> purchasing power of my wages is increased. The purchasing power
> of my nest egg is increased. Food, water, shelter, and medicine
> is cheaper because of deflation.
>
> As far as I can tell, inflation is only bad for debtors because their
> real interest rate is increased. I guess that sucks for the U.S.
> government since it's the biggest debtor the world has ever known.
>
>
> Deflation = good. Inflation = bad. Buy commodities as a hedge against
> inflation. Divest yourself of dollars; they will become very abundant
> very soon.
>
> Check out my original articles at captialisthero.com
Paulson's Plan Fails to Understand the Problem; Madoff Is a Perfect Example [View article]
Has Wall Street Lost Its Edge? [View article]