Are we entering a period of both inflation and deflation?

Collarspace Discussion Forums

Home Login Search

Are we entering a period of both inflation and deflation?

View related threads: (in this forum | in all forums)

Logged in as: Guest

All Forums >> [Casual Banter] >> Off the Grid >> Are we entering a period of both inflation and deflation?

Page: [1]

Message

<< Older Topic Newer Topic >>

Are we entering a period of both inflation and deflation? - 10/18/2008 8:54:01 PM

MzMia

Posts: 5333
Joined: 7/30/2004
Status: offline

I was reading a thread on here about the economy.
Mr. Rogers pointed out we are in a period of deflation.
Then I began to think, "Can we be in a period of inflation and deflation,
at the same time?"
I did my usual internet research and the answer appears to be YES.

Inflation, deflation & the future of money | Chris Martenson

Any thoughts on battling inflation and deflation at the same time?

_____________________________

Namaste'
To Each His/Her Own
"DENIAL ain't just a river in Egypt." Mark Twain

What's your favorite fetish?
"My partner's whisper"--bloomswell

Profile

Post #: 1

RE: Are we entering a period of both inflation and defl... - 10/18/2008 9:38:42 PM

MadAxeman

Posts: 4171
Joined: 8/28/2008
From: UK
Status: offline

That would make it fellation, which is fine by me.

_____________________________

Hitman for the Subby Mafia

(in reply to MzMia)

Profile

Post #: 2

RE: Are we entering a period of both inflation and defl... - 10/18/2008 10:15:49 PM

corysub

Posts: 1492
Joined: 1/1/2004
Status: offline

I don't believe it would be possible to have a simultaneous period of "inflation" and "deflation"..Inflation refers to the rate of price increase either by demand exceeding supply, and deflation is supply exceeding demand, importantly due to the price of labor and raw material. The significant growth of the Chinese economy stimulated by their very low cost of labor (and in addition keeping their cost of goods sold COGS low by product dilution) has had important deflationary impact on global pricing. It would seem that quite possibly this could be moderating. The bursting financial debt bubble created by the availability of cheap money chasing real estate was inflationary, as was the Chinese and Indian economies blasting their way onto the world commodity markets to feed their growing need. This all exploded with the increase in interest rates in recent years, and the impact has just started to hit the world economy.

If the programs being put into effect by the worlds Financial Ministers do not work to relieve a frozen banking system, what you could see is not a period of inflation/deflation...but a period of "stagflation" which Webster defines as a persistent inflation combined with stagnant consumer demand and relatively high unemployment...and possible "depression". During the Great Depression...dunno why they called it "Great", unemployement got to around 25% I believe. Not a good thing.

(in reply to MzMia)

Profile

Post #: 3

RE: Are we entering a period of both inflation and defl... - 10/18/2008 10:25:37 PM

MzMia

Posts: 5333
Joined: 7/30/2004
Status: offline

Thanks for the reply, corysub.
I look around and I signs of both inflation and deflation.
According to several articles I have read, it is possible to have
it in different area's of course.

Well, it is something to ponder as we look at the economy these days.

_____________________________

Namaste'
To Each His/Her Own
"DENIAL ain't just a river in Egypt." Mark Twain

What's your favorite fetish?
"My partner's whisper"--bloomswell

(in reply to corysub)

Profile

Post #: 4