Archive for the Deflation Category

Stagflation?!?  Hands Down Or Hands Up? (January 14, 2019)

Posted in Deflation, Economics, Inflation, Price, Stagflation, Stock Market on January 14, 2019 by e-commentary.org

. . .

K          “The way I see the economy unfolding and unfurling in the near future, everything in or on your hands right now (stocks, bonds, lands, rides, gloves, etc.) will drop precipitously in price and everything you need to get your hands on to live (grub, aqua, tent, bike, threads, etc.) will rise staggeringly in price . . . and in value.”

J          “The old ‘lose-lose’ situation.  So many people are living a hand-to-mouth existence without much in or at or on hand to use or to lose and not much in their pockets to hand over for daily necessities.”

K          “One’s assets will halve, one’s expenses will at least double.”

. . . 

K          “For those who rode the rise, the taxes that were assessed on the assets as they rose in price will not be rebated when the assets retreat in price.”

J          “And as the assets rose in price but not in real economic value, the ‘wealth effect’ induced and seduced the owners of the assets to spend more and to incur more debt because they thought they were effectively wealthier.  Those spent monies are gone and those debts are still here and naggingly awaiting discharge.”

. . .

[See the e-commentary at “The Fed: Deal with ‘Stag’; Deal with ‘Flation’? August 7, 2006)”, “Stagflation And The Fed (September 17, 2007)”and “Going Forward With The ‘Reverse Stock Split’ (February 5, 2018)” proposing to double or even triple or even quadruple the Dow overnight just for fun.]

Bumper stickers of the week:

Hard come, easy go

stocks/2 + bonds/2 + lands/2 + rides/2 + gloves/2 + etc./2 = Net Worth;  

grub x 2 + aqua x 2 + tent x 2 + bike x 2 + threads x 2 + etc. x 2 = Recurring Expenses

Quantitative Easing = Money Printing (January 19, 2015)

Posted in Deflation, Economics, Federal Reserve, Inflation, INFORM Act, Money, Quantitative Easing on January 19, 2015 by e-commentary.org

. . .

A          “‘Quantitative Easing’ sounds so academic and antiseptic and . . . surely sound.”

B          “And nebulous enough to fool a frightened public that does sense that something is wrong.”

A          “When you cannot do anything positive and you feel a compulsion to do something, should you do something negative?”

B          “It is doing something.”

. . .

A          “The Federal Reserve has been ‘printing’ more money and passing it to the wealthy for a half-dozen years.  The money is not making a demand on resources right now, so there is no systemic inflation yet other than rises in the prices of basic necessities.  The general public does not have enough money to make substantial demands on resources, so some prices are even heading down.  The Federal Reserve ‘electrons’ are driving up the stock market and leading some to conclude that all is good in the land.  When the money meanders into the economy and begins to make demands on resources that also may be in short supply, prices will go up.”

B          “Limited deflation then inflation if not hyperinflation.  Coming to a nation near you.”

. . .

A          “When someone discovers that printing money is the problem, how will the Federal Reserve react?”

B          “‘Print’ more money.”

. . .

[See the “Intergenerational Financial Obligations Reform Act” (INFORM Act) discussed at http://www.theinpformact.org/.]

Bumper stickers of the week:

Quantitative Easing:  Coming (Back) To A Nation Near You

Quantitative Easing 4 = Money Printing (4th Edition) ?

Print, baby, print