Newsflash for the anti-Fed conspiracy nuts

Discussion in 'Economy' started by OohPooPahDoo, Jan 20, 2012.

  1. OohPooPahDoo
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    OohPooPahDoo Gold Member

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    Deflations hurts -
    people with business loans
    people with home loans
    people trying to get business loans
    people trying to get home loans


    Deflation helps -
    wealthy people


    This should be common sense, but it apparently isn't.

    Think of it this way. If I've got half of all the money in the U.S. stuffed in my mattress, and the money supply contracts, I've still got the same amount of money - but you all out in the world struggling to get by needing lines of credit to start a new business or keep one running -will have less of it. Making it harder for you. and easier for me.
     
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  2. LibertyForAll
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    LibertyForAll Senior Member

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    The part you are forgetting ( or leaving out) is that people won't need as much money because the cost of living will go down. People will have more disposable income and be able to save money. People who are able to save money and pay their bills will have good credit and be able to get loans. People who save money will have down payments that will help them get loans and just maybe they won't need to borrow money because they will be able to save the money they need in a reasonable amount of time.
     
  3. Truthmatters
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    Truthmatters BANNED

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    Many of those mattresses are overseas.
     
  4. editec
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    editec Mr. Forgot-it-All

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    YUP.

    These nitwits are terrified of inflation.

    Of course they don't seem to understand that the USA just went though a major DEFLATION and that is why this economy is in the crapper.

    No sense trying to explain it to them since they are not interested in the facts.
     
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  5. OohPooPahDoo
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    OohPooPahDoo Gold Member

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    The part you are forgetting is the cost of maintaining their debt loads will be the same. Deflation cripples all but the largest businesses. So while personal incomes and business profits are going DOWN - people and businesses will still have to pay the same to maintain debt they've already incurred, and it becomes harder for them to take on more debt when they need to.

    You only need to look at the housing market to see what happens when prices fall.

    ???? Wages and salaries go DOWN under deflation, their debts stay the same, I'm failing to see how that translates to MORE disposable income.
     
    Last edited: Jan 20, 2012
  6. eots
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    eots no fly list

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    and house prices fell why ??
     
  7. OohPooPahDoo
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    OohPooPahDoo Gold Member

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    Ultimately, a reduction in the available money people had to buy houses with.
     
  8. Oddball
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    Oddball BANNED Supporting Member

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    You have neither inflation nor deflation in the absence of a worthless fiat currency, numbnutz.
     
  9. eots
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    eots no fly list

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    so if we just print more money problem solved ?
     
  10. imbalance
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    imbalance Silver Member

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    If gov doesn't liquidate US debt held by the Fed and write off all that malinvestment, how else will we preempt speculative attacks and hyperinflation when the petrodollar standard inevitably collapses?

    [ame=http://www.youtube.com/watch?v=Enm0CBx52g4]The SHOCKING Truth About the U.S. Dollar: What The Media Never Told You - YouTube[/ame]​
     

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