Hyperdeflation Has Begun

I had heard that when the economy crashes inflation and deflation happen at the same time.

Commodities like food and gas will sky rocket and the prices on things we don't need will drop dramatically.

reply to post by eNumbra


I'm just asking you to keep an open mind to what could be ahead.

Another sensationalist thread that claims doom and gloom yet fails to bring the goods?

reply to post by hippomchippo


You'll get the goods. If there is anything out there in the near future on this subject, I'll be the first to post it here.

I may be a little bit slow.
But wouldn't hyper inflation mean that the dollar loses value and when a loaf of bread would normally cost 2 dollars for example, it would cost 20 dollars?

stories from other places where hyper inflation has taken place has meant almost using a wheel barrow full of money just to buy simple daily needs.

Originally posted by prophecywatcher
reply to post by hippomchippo

 

You'll get the goods. If there is anything out there in the near future on this subject, I'll be the first to post it here.

Perhaps you should wait until more things fall than an exercise bike before you go with the title "Hyperdeflation has begun"

As that's a rather huge title for a thread about an exercise bike.

reply to post by munkey66


Thats Right. The way I understand it, hyperinflation happens to commodities and hyperdeflation happens to items people don't need and can't afford to buy.

[edit on 28-8-2010 by prophecywatcher]

reply to post by hippomchippo


We shall see

reply to post by prophecywatcher


But how can this theory of yours stand up ? You're claiming hyperdeflation is upon us simply based on the price of two or three consumer items in a store in Tootsyville USA. That's as risible an argument as me claiming the entire European economy is on the verge of collapse because cat food's gone down in price by tuppence a can in my local corner shop.

reply to post by LeBombDiggity


You can also take into consideration that the economy is worse than expected. Unemployment continues to rise and they are talking about buying more bank bonds which means they will print more money. Food prices are also on the rise.

This could be an indicator but a very early one. Inflation/deflation is inevitable it's just a matter of when.

[edit on 28-8-2010 by prophecywatcher]

This is part of a merchandising program.

Most manufacturers and suppliers of large retail chains put together a series of sales throughout the year where they discount the price to the retailer + provide advertising dollars (flyer placement, etc).

The timing and drastic discount for these items makes me think the manufacturer needs cash. They have stock and are liquidating it - probably hurting from poor sales last season.

While not evidence of hyper-deflation, it is evidence of a hurting economy. And if this becomes a trend with discretionary items in a variety of verticals, then yeah, it will snowball into hyper-deflation.

Originally posted by eNumbra
reply to post by prophecywatcher

 

Just like one fuzzy orb of light on a cellphone camera is not proof of an alien conspiracy; this is not proof of anything. "HyperDEflation" would require a myriad of factors to come together to revalue the dollar. None of those factors have been met.

ALL of those factors have been met.. Deflations chief indicator is Consumer Monetary Supply, which is being crippled.. buying power drops, the economy contracts.

Granted the OP's post isn't "proof" of anything, we are in fact facing deflation.

Looks like an excellent opportunity for savings, Randy!
(Nobody outside of Arizona will get that reference...)

Seriously, now is a great time to take advantage of good deals as you see them. If you've always wanted a new treadmill, may as well buy it at 1/6th of it's original sticker price, no?

No need to panic...even if one localized stock clearance sale could be construed as anything to do with 'hyperdeflation', I would urge calm:

With turbo Tim and Heli-Ben pulling the levers, any signs of deflation will quickly be met with massive stimulus and quantative easing. Hyperinflation is way more likely than hyperdeflation.

Originally posted by prophecywatcher
It seems like the pages is down, so you might not be able to access the link. To sum it up there was a $359.00 treadmill marked down to $57.00 and a $269.00 exercise bike marked down to $42.45. There was also a $169.00 one marked down to $29.00. Clearing inventory or price deflation?

I see this all the time. If you look in to it you will see what the deal is. They will have ONLY one at that price and it will 9 times out of 10 be the floor display. If you read the fine print it will say something like "limited quantity" or " quantity is limited ". I do not think it is right to put out an ad like that but it gets people in the stores and that it all that maters to them.

You do realise that the real worth of that excersice bike is probably 30 dollars to begin with? including materials labor and shipping? then marked up to 250 dollars...... Most of the products sold to consumers are worthless....So no hyper deflation has not begun , you really have no clue what that means...

Well, to give you a little backing, since everyone is jumping on you, the price of gasoline has been steadily dropping for some time now.

That could lower the cost of shipping which in turn leads to better profit margins, but this never really translates into the market that quickly.

I think the massive inventories that have promulgated the stores is another possibility.

Also, if deflation is happening, then the stores getting what they can for their products before the real SHTF scenario happens is actually smart. Even taking a loss is better than getting nothing for the products.

My personal opinion is that the fed is going to purposefully use inflation to take care of the debt, which means that this should start going the other way.

Stagflation or deflation will only hurt the debt, which is another possible scenario for destroying the economy.

Oh well, lots of ideas for you to mull over.

[edit on 29-8-2010 by saltheart foamfollower]

Originally posted by prophecywatcher
reply to post by LoneGunMan

 

I know that they tried to run several different sales to push these same items, and they just wouldn't go. They even tried a half price one day only sale, with no buyers.

I was trained by George S. May one of the biggest business consultants in the nation. That company is the one to recommend to Ray Kroc that Patrick Mc Donald should franchise the company. You would never even of heard of Mc Donald's if it weren't for George S. May Co.

This is where I learned that this is the way chain stores work.

This is why sales happen, it is very seldom that they have a sale because the item is not selling. Believe me what you witnessed was that on progress.

It goes in increments until they reach a certain point in profit then they blow it out. It was your perception that they were not selling, when in fact I bet they were restocking them at a constant rate.

Walmart is the company that does it best though. Especially in clothing. That is why you can pick up a nice $3.00 dollar blouse!