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I think there's a valid point to be made about individuals taking on too much debt, but I don't see what it has to do with deflation, or how deflation would supposedly help.
I must be missing some, either that I've forgotten everything that I learn in four years of economic education. Deflation isn't the prescription for investment bubbles, and debt, inflation in the form of higher interest rates are. On casual read, it seems to me that the OP has this process completely backwards.
I own stocks. Therefore I own companies that provide jobs.
Lol.
Here's some help.
How are you gonna magically increase your wages to keep up with inflation? Why do you want your expenses (personal and business) to increase in price right now?
Do you want your community to have more disposable income, or less?
Jobs are created by demand. Businesses do nothing but respond to actual or anticipated changes in demand.
If there were these "job creator" people, they should have been hauled out in the street and flogged for not creating more jobs back in those years when so many people were in such dire need of one.
Well there's an Economy outside of your personal finances. And regardless of what you believe you are tied to it.
Your attitude clearly shows your out of touch with the plight of most Americans. And your dependence upon the rest of the population.
Most Americans would not be helped by deflation. I personally would be helped by deflation (provided it doesnt make me lose my job) but that is solely because I have a good sum of cash in the bank no debt and do not own a home. These are the three factors that need to be met for people to be helped by deflation, the number of Americans that meet these factors is very low.
Most Americans would not be helped by deflation. I personally would be helped by deflation (provided it doesnt make me lose my job) but that is solely because I have a good sum of cash in the bank no debt and do not own a home. These are the three factors that need to be met for people to be helped by deflation, the number of Americans that meet these factors is very low.
I just believe a home to be a place to live in rather than an ever increasing investment.
If home prices were to drop they'd still stay relative to the market so you really wouldn't be losing that much 'value'.
If its an investment property it would still be relative to your rent/mortgage so it wouldn't be a huge net loss.
I think it would simply keep all of us from growing beyond our means in debt.
So you're saying everyone should suffer to help an extremely small minority of people with no debt who will be hurt anyway? Good plan! Just like what a sociopath would want.
I think you need to go back to school and take Economic Class 101. This idea that it always has to be easy, no pain, no suffering in life is a flaw in thinking. The FED kept the punchbowl out too long. The punchbowl is the weak dollar. Lower interest rates made our currency weak. This allowed for massive borrowing of cheap US dollar debt. This was a mistake. It was a FED mistake. More debt at this point does the world no good. The world needs to unwind its debt bubble. As a means to do this, I welcome the strong US Dollar and higher interest rates. Strong US Dollar and higher interest rates = Deflation.
We needed deflation to begin in 2001. Our leaders had no stomach for it; they were cowards. That is the only way out of this mess we've created through extended cowardice policies. It's not going to be pretty, finally deflating the global economy -- but, as I say, it's the only way out of this insanity that low interest rates have caused.
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