2026 TeoTwawKi ... 2032 Darkest Interregnum Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum

GLD 368.29

+0.6%

Nov 7 4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Maurice Winn who wrote (156820)	4/21/2020 10:07:42 PM
From: sense	Read Replies (1) of 217587

Made in China kept prices low to lower thanks to hordes working for very low pay. The fantastically amazing technological revolution also enabled vastly lower prices such as for computers and things computers do. Economies of scale hugely cut prices too as one software developer now can supply a billion users whereas 40 years ago he did not have even one customer. A chip producer for cellphones had thousands of customers 30 years ago but now has a billion. The design and production costs per unit are vastly reduced. That's not deflation. Yes. That's deflation. The entire world's labor has been massively devalued by reintroducing China and its 1.4 billion people back into to the global economy. That's been a drag on others economies for 30 years now... but, now, relative advantage based on lower wages is a declining relative value. Technology, also... is deflationary in its impacts... which isn't news. Computers, today, mean we don't pay pools of young women to hang around waiting to type things... all sorts of efficiencies have been derived from computers... and the impacts ARE deflationary. Efficiencies of scale... same sort of thing... But, that's NOT the problem... with deflation. The problem is with deflationary impacts of FINANCIAL ENGINEERING that are structured... as a TRANSFER SCHEME... You note house prices have risen ? Why don't we just make more houses rather than bid the old ones to crazy high prices ? We can't pay people to make new ones that would be cheaper ? Artificially imposed scarcity... is not "price inflation" ? Asset bubbles... are not "inflation"... although "asset price inflation" might become... inflationary... IF the $ chasing an almost fixed number of assets... were able to escape the financial bubble and find non-financial uses, even driving accelerating activity in the economy ? Why doesn't that happen? We do live in an intrinsically deflationary era... But, we're also reaching end points in some of those factors mentioned above... Tellingly, the "China thing" is over... as wages have equilibrated. But, also, the "financial engineering thing"... appears it is close to being over... as the financial ponzi scam is failing at an accelerating pace. Technology is likely to continue imposing deflationary impacts...

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next