Inflation vs Deflation

[meanreversion]

Anyone remember Wim Duisenberg? Those were the days.. ECB press conferences were fun back then.

 

[Atilla]

It was written in the stars...

Bernanke was speaking after the Fed left its key interest rate at historically low levels and stuck to its $600 billion bond-buying program. The Fed also hiked its 2011 inflation view to a level between 2.1% and 2.8% — implicitly acknowledging that prices are running faster than the 1.7% to 2% range the Fed considers to be “mandate consistent.” Bernanke, as he’s done before, said the inflation pickup will be “transitory.”


Good ol Fed - soooo predictable...

BoE in same boat...

ECB with the most diverse nation and economics is a mixed bag of sweet and sour allsorts - in a league of its own...


I would suggest best pick out of the three contenders right now is an outsider - pure gold...

 

[Atilla]

It was written in the stars...

Bernanke was speaking after the Fed left its key interest rate at historically low levels and stuck to its $600 billion bond-buying program. The Fed also hiked its 2011 inflation view to a level between 2.1% and 2.8% — implicitly acknowledging that prices are running faster than the 1.7% to 2% range the Fed considers to be “mandate consistent.” Bernanke, as he’s done before, said the inflation pickup will be “transitory.”


Good ol Fed - soooo predictable...

BoE in same boat...

ECB with the most diverse nation and economics is a mixed bag of sweet and sour allsorts - in a league of its own...


I would suggest best pick out of the three contenders right now is an outsider - pure gold...

Was looking for a past inflation thread and came along this one...

Another pure golden piece of advice from yours trully...


However, this inflation piece of news was also written in the stars despite some calling for deflation. Hyperinflation is still a possibility imo.

UK CPI inflation rate rises to 4.4% in July


Beware...

 

[neil]

Was looking for a past inflation thread and came along this one...

Another pure golden piece of advice from yours trully...


However, this inflation piece of news was also written in the stars despite some calling for deflation. Hyperinflation is still a possibility imo.

UK CPI inflation rate rises to 4.4% in July


Beware...

Suppose all countries cancelled debt and went back to a clean slate - is it possible ?

 

[Atilla]

Suppose all countries cancelled debt and went back to a clean slate - is it possible ?

Do you mean internally or internationally?

Not sure if this is tongue and cheek question but imho.


Internally yes - see no problem with it. We've already had this scenario where transfer of wealth from tax payers to bonus receiving bankers and politicians have taken place.

Germany did similar thing when it united with the old East Germany and brought their currency to par with the DM.



Internationally - no not really as IOUs will have to be met and when a country is strong enough it will take not only what belongs to it but also anything that doesn't as well. We see this pretty much everyday as it is with the big powerful countries.


We may be witnessing the same response with the EC and Euro if they pull out of this and single currency becomes stronger or falls apart??? Dury is out on this one.

 

[Successful_Trader]

If I had to choose between the two, I would chose inflation... deflation makes people put off purchases hoping the price would go down even more. Conversely, investors get less money on their capital investments, too... inflation is the normal, lesser evil.

 

[glyder]

but inflation takes the value of hard won savings and investments. And especially for older people who have worked to pay off their debts and save for a pension inflationary economic policies are theft.
I also think inflationary policies are often linked to socialistic govt policies. Govts print money, buy votes whilst screwing the economy, which in turns detracts the govt from forming policies that really matter which leaves us heading where we are .....to a mess with higher inflation

 

[new_trader]

If I had to choose between the two, I would chose inflation... deflation makes people put off purchases hoping the price would go down even more. Conversely, investors get less money on their capital investments, too... inflation is the normal, lesser evil.

Absolute nonsense. You've been brainwashed by the inflationist propaganda. Look how cheap consumer electronics has got over time and yet the items sell like hot cakes.