dailyreckoning.com
The Big Theoretical Bugaboo
"...Let me ask you; if 51 things were going up in price by a buck each, and 49 things were going down in price by a buck each, would that be "inflation"? And, since you found that one so easy, let me also ask you this question; if 51 things were going down by a buck and 49 were going up by a buck, would that be "deflation"? Now we get to the big theoretical bugaboo; if the price of a share of stock goes down by 50% and the price of a loaf of bread goes up by 49%, which is it? Inflation or deflation? Well, if you could eat the shares of stock, then, ummm. Hey! Wait a minute here! This sounds like an idea worthy of a Nobel Prize!..."
...Bill Bonner, also of the Daily Reckoning staff, took time away from his daily mediations to traipse down the path of the mundane, grubby world of dollars and cents to calculate that, "Thanks to the Bush tax cuts, a single guy making $50,000 per year will take home another $8."
(That sounds just about like me,but I am in severe danger of losing overtime pay, thanks to Shrub, so it will be a net loss, not even counting the increases in other taxes which I am so looking forward to.)
Sundance
... |
