One year ago, economists were worried about inflation. Now, they are worried about deflation ”” prices for everything from corn to soybeans to gold are falling. While it might seem like lower prices could be a good thing, unchecked deflation can bring economic activity to a standstill. Economists say the risks of deflation should not be ignored.
Methinks they doest protest too much.
Don
Deflation first for the next six months to 3 years. Then it will be inflation. Lots and lots and lots of inflation. I am praying that it will not be Weimar style hyperinflation but I have no confidence that it will not.
this is deflation here and now. We shouldn’t be worrrying that it is coming because it is here.
A large amount of cash has been removed from the system. One of the things preventing banks from lending money – the assets they cover with these loans will only be less valuable later on, so they wait, or charge a premium for the money. Current lending rules will make them write down the assets as they decline.
This is a badly destructive cycle we are in and the congress, the treasury the president or the Fed have no clue on how to reverse it. If GM fails, it will happen so fast as to take our breath away. It will fall apart with little warning in a matter of days. Congress will not be able to take action in time to prevent chapter 11.
NPR—–one has to take what they say with a large grain of salt.
Mostly it’s socialistic propaganda.
bl
[i] NPR—–one has to take what they say with a large grain of salt.
Mostly it’s socialistic propaganda. [/i]
Always good to comment on the substance of a story.
I agree with Bob. NPR is far left on every issue, especially promoting the lesbigay agenda. Probably because it’s artsy atmosphere attracts all these idealistic butterflies. It’s a shame, as I enjoy the classical and choir music our local station broadcasts.