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A stock market crash would not be a good thing, the money is invested and thus would just disappear. That would allow some to buy stocks at lower prices (good thing) but also scare joe-public from investing, and joe-public invests at a low rate currently. We need the investment participation rate to rise quite a bit more before a crash.
A housing crash in general would be a good thing, as houses are a consumption item, and paying less for houses would allow people to have more money for productive assets, like education, investing, or simply consuming other items. A rent crash too. I would never argue that no-one would get hurt, but then again, people get hurt at 0% savings rates too, and they are currently getting left out in the rain. It would destroy consumer confidence of course, as a rapidly rising house price is currently making up for lousy actual income growth, even though rising home prices even hurts continuing home owners in terms of higher taxes and maintenance costs.
Inflation is probably high enough as it is, other than oil, everything has gone up dramatically in price in the past few years.
I think higher taxes and more regulations on lending would lead to a softer market and housing crash, and the money from higher taxes used to cushion lower income and provide educational opportunities for low-to-middle income groups would be better than forcing any crash.
Again, the Fed did everything wrong that it possibly could since 2001. Today, our total debt to gdp is about 330% - 350%. FED policies have been to protect debt, not destroy it. But debt needs to be destroyed. We must go THROUGH the Dark Forest of Deflation, not find ways to steal money from the future to avoid going through this forest.
We only appear better off than in 2008 because we borrowed or stole a massive amount of money from the future, through FED policies. But that is what destroys empires, stealing money from the future, and leaving nothing for future generations. We are destroying future for our children and grandchildren. What a bunch of Cowards!!!!!
Again, the Fed did everything wrong that it possibly could since 2001. Today, our total debt to gdp is about 330% - 350%. FED policies have been to protect debt, not destroy it. But debt needs to be destroyed. We must go THROUGH the Dark Forest of Deflation, not find ways to steal money from the future to avoid going through this forest.
We only appear better off than in 2008 because we borrowed or stole a massive amount of money from the future, through FED policies. But that is what destroys empires, stealing money from the future, and leaving nothing for future generations. We are destroying future for our children and grandchildren. What a bunch of Cowards!!!!!
So you're saying that if you whip an ox until it bleeds and goes into a coma it'll do better than it did before? Ok
Obviously our children will have to steal the Fed's time machine and travel back to the past, where they can get jobs when people can actually pay them.
Would the current drop in petroleum prices be considered deflation? If so, then we need more of it. I would like to see a serious decline in the prices of food, energy, cloths and rents along with a big increase in my pension and Social Security. That would be nice.
Would the current drop in petroleum prices be considered deflation? If so, then we need more of it. I would like to see a serious decline in the prices of food, energy, cloths and rents along with a big increase in my pension and Social Security. That would be nice.
That would be great, but it's highly unlikely you'd get an increase in SS if everything was going down in price. Deflation really refers to a general drop in price across the whole economy. It's bad because it also means that people's incomes drop, and that spending is discouraged (your dollar buys more the longer you hold onto it). It does benefit retirees more than others, who tend to have less debt, incomes with nominal floors, and aren't in danger of losing their jobs to a deflation-driven recession.
That would be great, but it's highly unlikely you'd get an increase in SS if everything was going down in price. Deflation really refers to a general drop in price across the whole economy. It's bad because it also means that people's incomes drop, and that spending is discouraged (your dollar buys more the longer you hold onto it). It does benefit retirees more than others, who tend to have less debt, incomes with nominal floors, and aren't in danger of losing their jobs to a deflation-driven recession.
DEFLATION is NOT bad or evil, it's simply part of a two way cycle = Inflation - Deflation. After every inflation comes deflation. After every deflation comes inflation. It works like day and night. You can't have one without the other. Look at the mess we are in because we tried, and are still trying, to deny this truth.
If you can't understand that DEFLATION is normal and necessary at certain times then you don't understand basic economic principles, you don't understand how economy works or supposed to work.
If you believe in perpetual growth then you have to understand that in nature nothing grows forever, except CANCER, and cancer does kill you.
Is it hard to understand that everything since 2001 has been false illusion of growth thru debt? Fake growth, fake recovery, just a massive theft of Public Money, Taxpayers money to protect status quo, to protect failed and bankrupt companies, the Rich and Wall Street.
As long as we try to protect massive debt that we carry and that needs to be destroyed we will NEVER have real growth, real recovery.
Is it really that hard for some of you to see and finally realize that the FED can't save us, that they are making things worse and that we are destroying future for our children and grandchildren? Stealing money from the future is NOT a solution to our problems.
There is a natural process of breathing out (growth) and breathing in (deflation of that growth, rest). The human intellect always wants to FIX everything. To make it better. Maybe the process of growth and rest does not need to be fixed.
The entire World is headed into a global depression. Deflation, and in this case GREAT DEPRESSION can't be avoided. The FED was able to postpone it for a few years BUT IT CAN"T BE AVOIDED!!!!!!!!
Last edited by Dr. Kevin; 10-12-2015 at 03:44 PM..
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Discourage people from leaving money behind so they have to spend it today
