Hi Timba,
Thanks for the link. If you follow the links, you will read this link:
news.bbc.co.uk
"I was going to take out a mortgage in December," Mr O'Conor, a planning chief at a local pharmaceutical company, told BBC News Online.
"But then I decided it was not the best thing. I was lucky - or smart," he adds, with a laugh.
****So I assume, this implies that Houses did not appreciate in price!! Do you contest that Argentina property prices appreciated or held value?
Now, let's look at salaries:
news.bbc.co.uk
As many working Argentines, his salary has been reduced and now he is not paid on time. He would like to find more stable work, but he knows he is lucky to even have a job.
********Now, I assume, this implies that salaries fell (as more people were unemployed)!! Do you contest that Argentina salaries soared with inflation?
Now, more on property market:
news.bbc.co.uk
The crash in the local property market means he will only get half the value if he sells now.
Now, more on Restaurant business:
news.bbc.co.uk
She also highlights the ironies of Argentina's plight, as the partially floated peso has now made everything in the once expensive Buenos Aires more affordable.
"I was walking down the most expensive street - and all the fine restaurants you couldn't afford before, you can now go to.
"But of course there is hardly anyone there because everyone is saving their money."
More evidence that RENT and Property prices FELL:
news.bbc.co.uk
Of course, that means our properties here will be highly devalued, as well as the rent I get from my extra flat, and my husband is anguishing over his daughter by his first marriage, who is married and has a small baby.
Now, did Taxi prices soar because of inflation?:
news.bbc.co.uk
"All the prices are going up. I went to the store last night and even the pasta is more expensive now. But of course I cannot put my fares up," he complains. "People don't have any cash because of the bank restrictions, so they are not using the few coins they have for taxi rides.
**********So tell me Timba, Does Loan defaults, SALARY fall, TAXI price fall, Property price fall, Shares fall (non-ADRs) imply inflation to you?
Ofcourse as bart indicated, monetary base increased even in US in 1930 (as in Argentina in 2002) - Does that imply inflation to you? Who the hell got the loans from that monetary base increase in Argentina/1929 US?
Ofcourse, you will point to the food price increase as inflation. I pointed earlier that oil prices soared 71% in US in 1933 and oil prices soared early in the 1929 deflation. Commodities bull market started in 1933 (as per Jim Rogers). So tell me Timba, was 1929 an inflationary period in US? This is what lot of people including Mish is trying to tell. You are living in a fantasy land if you thought deflation means ALL prices fall. Even in Murray Rothbard's AGD, he mentions meat prices increase in depression. He does not talk about price increase per se - but mentions it as a union forming against meat processors for price increase. But that does not mean restaurant prices increased (as in Argentina, the restaurant prices fall - may be they did not pay salary to the cook!!).
The only difference between Argentina and Japan is the degree of variance. In Japan food prices fell unnoticable whereas in Argentina it soared. Restaurants in Japan offered lot of coupons - prices outright fell in Argentina. Stocks, Assets fell big time in Japan and Argentina. Salary did not fall much in Japan but it did in Argentina. In my opinion, Japan did not yet experience the credit bubble burst (the credit bubble grew all through 90s and 2000+). The real deflation will hit Japan soon along with US!!
As Keynes said, a good banker is one who fails along with everyone!! That is the scenario we are in. Anglo-Saxon, Chindia, Japan are all gearing up for the ultimate failure. It is a global phenomenon driven by USD. I dont understand how you see it as 1970s inflation. It is 1929!! |
