<(a) wild inflation or (b) untamed deflation.
As matters stand today, we have both in the USD space, disguised by the faulty measuring method. The CPI is near useless as an indicator to what it costs to maintain a normal life.
Fact is, it costs more and more to live a ‘standard’ life. Computers and telecom are costing less, enabled by destruction of our savings, and simultaneously, medical treatment, housing, and education are costing more, enhanced by bad policies, skewed legal codes, and weight of paper money.
Take another example, it takes more and more capital to earn less and less passive income and support a constant life style.
With one foot in icy cold water of deflation, and another in boiling hot water of inflation, on average we are doing fine, until both feet fall off >
Jay, my view is that, as you say, we are seeing a dividing of the world into two realms. One is the deflationary world of It, where more and more is achieved with less and less until everything is achieved with nothing. The other is the continuing world of jealousy, acrimony, lust, envy, pride, sloth, error, greed, tribal loyalty, fear, fun, anger, happiness found in 6 billion chimpoids.
The two worlds totally overlap at present. But division is in process. My intention is to keep both financial feet in the world of It while using the chimpoid world to serve my chimpoid needs.
Some time in the next century, the distinction will be as plain as the distinction between Rwanda and Mira Mesa in North San Diego where QUALCOMM city sits, well above the 99th percentile tsunami level. It'll probably be as distinct as the difference between a chimp's life in the wild and life in Manhattan. Some would say the chimps have a better life. For example it would be illegal to keep a large primate, all day, in a cubicle, harassing it with phones, flickering screens, artificial flickering light, toxic coffee to keep it awake and traffic turmoil and stress, while binding it with miles of red tape and unknowable laws.
The hourly rate of people will continue to rise as Uncle Al prints [though the rise will not be in USA employee pockets so much as in China's, India's - not Indonesia's as they will now go backwards thanks to terrorized tourists]. That's the inflation component. The price of electronics and the phragmented photon world of cyberautomation will continue to drop.
Uncle Al gets to enjoy the best of both worlds.
As you say, people had better be very careful they don't lose both feet.
The more and more capital for less and less passive profit is a transient effect, to be tolerated while the other opportunities develop and to be abandoned as interest rates rise and the crowds go surging towards those higher interest rates. They can take over from me and I'll buy the shares they will be abandoning - I might even borrow some of their money at the newly high interest rates to enable me to help even more of the desperate sellers.
That's what was supposed to happen 2 years ago, but the overall pummelling was far more than I expected [in the Nasdaqian world especially]. Not to worry. We are back on track. Fortunately and as expected, without the deflationary implosion I feared - which is still possible but unlikely given the huge market clearing already completed.
Or something along those lines.
Mqurice
PS: Note, in the Deflation watch zone, some minor reports in distant lands.... Message 18022423 But very few posts. When the thread is rampant with posts [as QUALCOMM's was in 1999] I'll know deflation is getting serious. |
