Txdigest.com

In his opening monologue, Bob spoke about the recent volatility.

He identified two main causes for that..the Ebola scare, and the bad news out of Europe, which is that the region could slip into punishing deflation.

He also discussed how this coming week is chock full of earnings reports from many of the biggest companies in the nation..and how the investment community is now fixated on that.

The idea that deflation is a bad thing is nuts. Deflation means that the cost of goods goes down. That increases the standard of living for everyone goes up. Why is that a bad thing? The loosers are the banks and the ruling class that control them. F&ck them! They are leeches.

A general decline in prices, often caused by a reduction in the supply of money or credit. Deflation can be caused also by a decrease in government, personal or investment spending. The opposite of inflation, deflation has the side effect of increased unemployment since there is a lower level of demand in the economy, which can lead to an economic depression. Central banks attempt to stop severe deflation, along with severe inflation, in an attempt to keep the excessive drop in prices to a minimum.

The decline in prices of assets, is often known as Asset Deflation.

INVESTOPEDIA EXPLAINS 'DEFLATION'
Declining prices, if they persist, generally create a vicious spiral of negatives such as falling profits, closing factories, shrinking employment and incomes, and increasing defaults on loans by companies and individuals. To counter deflation, the Federal Reserve (the Fed) can use monetary policy to increase the money supply and deliberately induce rising prices, causing inflation. Rising prices provide an essential lubricant for any sustained recovery because businesses increase profits and take some of the depressive pressures off wages and debtors of every kind.

Deflationary periods can be both short or long, relatively speaking. Japan, for example, had a period of deflation lasting decades starting in the early 1990's. The Japanese government lowered interest rates to try and stimulate inflation, to no avail. Zero interest rate policy was ended in July of 2006.

Did you like the Great Depression?

That was deflation.

Did you like where we were going from late 2008 until 2010 or so?

That was the beginnings of deflation.

GFB wrote:Did you like the Great Depression?

That was deflation.

Did you like where we were going from late 2008 until 2010 or so?

That was the beginnings of deflation.

The Great Depression was not caused by deflation. It was caused by the inflation
that created the Roaring Twenties. That caused the general level of prices into the stratisphere.
The idea that deflation is bad is pure and total bull$hit! It is propaganda from the banking system,
especially the FED.

planosteve wrote:

GFB wrote:Did you like the Great Depression?

That was deflation.

Did you like where we were going from late 2008 until 2010 or so?

That was the beginnings of deflation.

The Great Depression was not caused by deflation. It was caused by the inflation
that created the Roaring Twenties. That caused the general level of prices into the stratisphere.
The idea that deflation is bad is pure and total bull$hit! It is propaganda from the banking system,
especially the FED.

I didn't say what CAUSED it.

I simply said..what it is.

When we were hip deep in Depression..we were hip deep in deflation.

Recommend Reading:

http://mises.org/document/3313/The-Bubble-that-Broke-the-World

Recommended reading:

http://www.amazon.com/How-Economy-Works ... 0735200769

I'm sure both of you will read each other's book and be in total agreement by tomorrow....

crocmommy wrote:I'm sure both of you will read each other's book and be in total agreement by tomorrow....

Mine was a "Stevey joke"..he's not kidding.

GFB wrote:Recommended reading:

http://www.amazon.com/How-Economy-Works ... 0735200769

This is a book on a totally different subject. It has nothing to do with the causes of the great depression. It seems to be primarily concerned with investments.

planosteve wrote:

GFB wrote:Recommended reading:

http://www.amazon.com/How-Economy-Works ... 0735200769

This is a book on a totally different subject. It has nothing to do with the causes of the great depression. It seems to be primarily concerned with investments.

You push books that you deem important..and I will push some others.

But no, it primarily deals with what all the data that comes out from the government considering CPI, GDP, labor statistics and things like that.

Sorry, not interested in any new theories about the Great Depression..not even much interested in the OLD ones.

GFB wrote:

planosteve wrote:

GFB wrote:Recommended reading:

http://www.amazon.com/How-Economy-Works ... 0735200769

This is a book on a totally different subject. It has nothing to do with the causes of the great depression. It seems to be primarily concerned with investments.

You push books that you deem important..and I will push some others.

But no, it primarily deals with what all the data that comes out from the government considering CPI, GDP, labor statistics and things like that.

Sorry, not interested in any new theories about the Great Depression..not even much interested in the OLD ones.

New theories? This book was written in 1932! Your not interested in any theory unless it fits your preconceptions.

I have no preconceptions...just not all that interested.