Ssssshhh.... Its D-D-D-D-....

Ssssshhh.... Its D-D-D-D-....

market-ticker.org

Deflation.

From Bloomberg:

Ten-year yields will probably drop to as low as 1.5 percent over the next two years, Mizuho Asset’s Takei said.

The only way that happens is if The United States is gripped by a bone-crushing deflationary spiral.

It can happen. It probably will happen, despite The Fed's attempts to stop it, because in fact The Fed has done all the wrong things to stop it over the last ten years...

(visit the link for the full news article)

There you have it. The horrible word of deflation is now real.

Blame the Fed, because it is 99% their fault.

market-ticker.org
(visit the link for the full news article)

[edit on 17/6/2009 by Mirthful Me]

What is going through deflation?? Of course the economy and all the bubbles are deflating. This article does not specify what they are using the term 'deflation' for. Deflation is normally a term applied to currency though and the USD is almost inevitably going to go through inflation...

Deflation isn't a bad thing.

When the economy deflates, it means your dollar has more buying power.

Look around your hometown. Look at how much home values have dropped. This is a good thing unless your selling your home. If your buying a home, a home that was a lot of money a couple years ago now costs much less.

Isn't that a good thing?

Deflation is good, In time that makes the dollar worth much more.

reply to post by whatukno


You forget it isnt good for the Fed though, all they want is to ruin our economy to cover their stupid mistakes from 10-15 years ago.

reply to post by Tentickles


What isn't good for the fed is GREAT for us.

Dang Federal Reserve. Someone should force the Government to print their own damn money and charge the Fed under Rico laws.

reply to post by whatukno


Oh don't worry, the Obama admin and congress are working feverishly to pass more spending bills and increase government liability and cost. It won't be deflation for long.

Soon we will get "high" inflation. So don't get too excited.

reply to post by Hastobemoretolife


As I have repeatedly tried to explain before. The government has no intention of paying back the national debt. It never has and never will.

Why should they? If the FED decides to call in their markers the government will just shut them down and replace them with someone else.

It's funny to me that people worry about the debt, like it ever will get paid off.

They can spend how ever much they want Its a fiat monetary system, there is no actual capital involved. Sure rack up those huge debts. They won't get paid off. No one will care.

reply to post by whatukno




Yep, and that is why inflation is a coming. You do realize they are Debt Deflation, the last time we had unavoidable debt deflation was the Great Depression. This should have happened in the 70's then the 80's and it should have happened at the beginning of the millennium. They have just kept putting it off and off and off, now they can't put it off any longer.

Our creditors, aka, China, Russia, UK, etc. Are at some point going to stop loaning us money, in fact they are preparing themselves to dump the dollar as we speak. Which means the US Government defaults on a payments which means the US Dollar loses value which means inflation.

It isn't "good" as you would like to think it is.

They are desperately trying to re-inflate asset prices. Treasury must sell 2+ trillion by October to finance the deficit. Without higher rates, this is not likely to occur. Long term, the whole system is going to come unraveled, but for now they need willing buyers of US treasuries. if I am right, the stock market should be higher and bond prices lower (higher rates) between now and October.

I borrowed 10,000 loaves of bread 10 years ago, now I only owe 5000 loaves. This is because the price of bread has doubled. With the interest of 500 loaves a year I am back to owing 10,000 loaves= $20,000.