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

To: carranza2 who wrote (109465)	1/4/2015 4:12:48 PM
From: Maurice Winn	Read Replies (2) \| Respond to of 217868

Neither a borrower nor a lender be, For loan oft loses both itself and friend, And borrowing dulls the edge of husbandry. Deflation is fine on both macro and micro scales. Russia and Venezuela have a lot more going wrong than the price of oil, though that's bad enough in their cases. Of course a date seller does badly if dates go out of fashion. Same for farriers when horses were replaced with the Model T, farriers were in trouble. When a whole country's economy is supported to a significant extent, then price reductions in that product is bad news. But it's great news for the buyers of the product. Having suffered a lifetime of inflation, it would be great to have a couple of decades of deflation for a change. Juan and J6P can cut their labour price and not lose their jobs: <if J6P or Juan Perez has no money, lost his job, etc. thanks to low prices, it doesn't much matter to him that prices are lower.> They can't if there are minimum wage laws or other laws which make it illegal to work. But then the problem is not with deflation but government rules. Blaming deflation when the problem is government [as usual] is a bad idea. I find deflation stimulates demand. I recently bought TWO new bikes. The first at NZ$129 and the second, same model, at NZ$99. My brother went to buy four but they were out of stock. My brother in law bought a couple. I had been repairing my old bike from Belgium [28 years old and quite rickety]. The cost and inconvenience of spare parts was high. The functionality of the old bike is low compared with my spiffing new bikes with front shock absorbers and 21 gears, and good brakes. I have bought loads of things Made in China. Some even though I don't really have a use for them [tools]. Having lived through the dark ages of high prices for simple tools, I can't resist such cheap high quality offerings. I have screwdrivers galore, tape measures, spanners, drills, saws, etc, computers and now Cyberphones. All because of deflation. Deflation stimulates demand. That's why companies cut prices. It gets people to buy more. Roll up, roll up, we have halved prices. People pile in. Demand goes up. Don't be deceived by the criminals diluting dollars who want to keep the game going. They charge a hefty royalty in dilution and inflation for providing units of currency. They do NOT want to have their margins eroded. They are rolling in umpty$billions annually from diluting $10 trillion in money by about 5% or 8% per year, permanently. The fact of globalisation and improved technology means prices keep falling despite dilution. They are on the most profitable game in human history. With no end in sight to the scientific and technological revolution the process seems destined to continue unless interrupted by MAD Zbigniew and the like, or some H5N1 variant. Or a big bolide in the Pacific ocean. Mqurice