Good morning Jay. Sipping coffee. If inflation destroys, ergo, deflation constructs. Why then the fear of deflation?
There have never been rich countries no poor countries.
Ther always have been INFLATED countries and DEFLATED countries.
Countries that could inflate their prices, of the labor, the products, the services, and the gvernment were considered rich. Countries which could not were considred poor. Throw in the conventional wisdom and we have the perceived realities by populaces all world over.
Italy was a poor country. It workers were the cheap manpower that helped Germany rebuild. They've got infltaed. Portugal, Spain, Ireland and Greece supplied cheap manpower and provided cheaper holidays' destinations. European Union and Abracadabra! They become rich. Why? Because they inflated.
I lived one a half year in Prague, Czech Republic. USD=40Kc then. Today, closer to the Abracadabra European Union entrance. USD=25.79. But lets make in Euros else you tell me the USD fell. Euro=32.38Kc.
In the last three years the Czech Republic as well as Hungary, Poland and Dolinar's Slovenia have bee getting richer by the day, i.e., they are being inflated.
In five to ten years, you'll pay in Prague the same prices you'd pay in Munich today, which Dolinar -a Munich based Slovenia- can prove is a very inflated -and very rich- city.
Once Elmat discovered the trick, he decided to work for inflated contractor's fee, DM, USD and Euro and have his costs in Brazilian Real, Thai Baht, Indonesian Rupiah, Czech Crowns or Malaysian Ringgits. This plus being not too generous with the government that comes for taxes allowed Elmat to, well, inflate. I am not a rich guy. I am just a bit inflated. hence I try to put my money in inflated currencies running away from deflated currencies like the USD today. |
