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A Man of Wealth and Taste
 
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Join Date: Dec 2002
Location: Out there somewhere beyond the doors of perception
Posts: 51,063
It is NOT INFLATION it is DEFLATION

It is NOT INFLATION it is DEFLATION. Since evey Central Bank in the world is a mad rush to the bottom with their painting regimes it means ALL currencies are being devalued at the same time. This is basically done to maintain currency equilibrium.

Since there is more money chasing the same amount of goods one could conclude that there would be inflation. Except for the fact that nearly 50M American are UNEMPLOYED and DO NOT HAVE THE MONEY TO SPEND thus there is NO CONSUMER DEMAND (Consumers make up 70% of the economy) and we should be seeing massive REAL DEFLATION of pricing. But that is NOT what is happening, pricing remains CONSTANT. That Constant pricing is the Inflation with so much money being printed, otherwise the bottom would drop out of pricing. Prices are being propped up with all the money being printed. Take away all that printing and EVERYTHING DROPS LIKE A ROCK RIGHT ON THROUGH THE CELLAR.

Fort example lets say you have a 100K mortgage on a 200K house. Suddenly your house DROPS in price down to 50K...your 100K mortgage is now TWICE what the house is worth. (In 2012 this is what was happening to the RE mrket when the FED stepped in with QE3). People WALK AWAY from their mortgages which further puts pricing pressure on RE. The person who owns their RE outright now has taken a huge hit to their net worth and is holding an asset that they can not get rid of for love nor money. They essentially have a place to live till they die if they can continue to pay the property taxes.

So the FED is pumping in new money into the system to prop up pricing. When you start to see prices START TO DROP in spite of the injection of liquidity is when you know the bottom is dropping out from under you. Meanwhile Society is beginning to devolve into fragmentation and chaos as a result of the economic stresses that have been building over at least the past 10 years..

Yesterday at Sams Club they had MM Black Forest Ham for $2.98 a lb, WITH an $8.00 off of the 8 lb BF Ham...Which brings the effective price down to $1.98 a lb...If yo go to the Big Chain Supers Kroger or Albertsons it is $10.99 lb, and at the local Hispanic market $7.99 lb...I call that Deflation because there is NO DEMAND and they want to move the product.
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Old 06-23-2020, 07:24 AM
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