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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?


To: Haim R. Branisteanu who wrote (49208)4/26/2009 2:21:22 AM
From: elmatador1 Recommendation  Respond to of 217931
 
Deflation is a wonderful thing! Inflation is bad because it is a tax in the poor people. Rich people can avoid inflation. Poor people cannot.

Once you have deflation that stuff that cost 500, drops to 400.

It becomes within the reach of the guy with less money and he consumes what before was beyond his reach.

Inflation is bad because as assets increase in price, and keep increasing, speculators step in and fuel inflation further, which in its turn bring more speculators resulting in a bubble.

There are places created with the sole prupose of living off inflation: Dubai! The price of the properties were supposed to be increasing forever. There are quite a few people who love inflation. For instance thos who poured the money there.

It is wrong to believe that deflation is bad because postpone purchases thus creating more deflationary pressures.

As soon as the guy see a good deal he jumps is. See for instance the stimulus in Brazil as government dropped the tax in cars and the market kicked out in earnest.



To: Haim R. Branisteanu who wrote (49208)4/26/2009 2:30:31 AM
From: elmatador  Respond to of 217931
 
Who is going to save the world economy? Poor people! How if poor people do not have money, else they would not be classified as poor?

Here enters the next billion as consumers.

Brazil stimulus does double duty
New housing replaces slums while creating jobs

features.csmonitor.com

Snow in Brazil Lula popular housing is shrinking slums too.

Real estate downturn boosts Morocco slum clearance
news.yahoo.com

Diamonds and cashmere down?
Luxury cars down?

It doesn't matter. It is the next billion that matters.

Think shirtless when you think drivers of the recovery of the world economy.

Would Detroit Sound Any Better in Italian?
nytimes.com
Fiat wants to get GM because they know how to manufactire and sell cars to poor people!
Fiat cars in Oliveira, Brazil. One of Sergio Marchionne’s best moves at Fiat was a bet on Brazil’s market. But moves to expand in the United States are “a huge management gamble,” an analyst says.



To: Haim R. Branisteanu who wrote (49208)4/26/2009 2:38:29 AM
From: elmatador  Respond to of 217931
 
Whom FDR used to take US of the Great Depression? Poor people.

It took the millions of the seven depressed area into the US economy. That created a demand pull and helped the US economy to growth again. I know more about the US than the Americans. Unless they are the thinking Americans Tj talks about, among whom we can count klaser.

It was not philantropism. It was cold economic thinking. Demand to create jobs and profits

GE turbines:
Ronald Reagan had moved to television as the host and a frequent performer for General Electric Theater during 1954. Reagan was later fired by General Electric in 1962 in response to his publicly referring to the TVA (TVA being a major customer for GE turbines) as one of the problems of "big government".