EU Deflation?

Here is the news.

BBC news


Seems prices of food and fuel are plummeting.

GREAT! at least more the poor/middle classes.

But wait!

This is BAD for the banks and bad for the governments holding debt.

Cant have that now can we?

So now the EU is actively trying to fight this deflation.

So EU governments are now basically try to artificially fix and inflate prices. Seems to me of proof how banks and governments are in each others pockets.

The EU central bank just printed 1.1 trillion euros lol the Euro is totaly screwed, Switzerland unpegging the Franc from the price of a Euro didnt exactly help.

Deflation is a nightmare for people in debt.

originally posted by: Dabrazzo


Deflation is a nightmare for people in debt.

Then don't get in debt.

I keep my personal debt at reasonable levels. IE I don't go out and buy £2000 flat screen TV on store cards.


I don't see why we have to protect people who have been stupid with money and debt.

Let em go bankrupt. Most the EU have good welfare systems so they wont go hungry and homeless just lose there shinny toys.

a reply to: crazyewok

What?

Oh right so you agree with the fact that banks repossess people homes yeah?, thats nice.

Most the EU have good welfare systems so they wont go hungry and homeless just lose there shinny toys.

Homelesness is London has increased over 50% and we have millions of malnourished children who cannot garauntee food for themselves, but thats ok!, who cares if their parents are struggling with debt to survive! they were just stupid with money.

originally posted by: Dabrazzo

Oh right so you agree with the fact that banks repossess people homes yeah?, thats nice.

Well don't over mortgage yourself.

Plan.

I never took out debt I could not repay even if I lost my job.

originally posted by: Dabrazzo
Homelesness is London has increased over 50% and we have millions of malnourished children who cannot garauntee food for themselves, but thats ok!, who cares if their parents are struggling with debt to survive! they were just stupid with money.

Well that issue needs to be addressed.

But not with giving people who have over borrowed a free ride.

a reply to: crazyewok

So EU governments are now basically try to artificially fix and inflate prices. Seems to me of proof how banks and governments are in each others pockets.

It has taken this to make you realise this is going on?

Who started the financial collapse, who bailed them out and who has to pay for this through austerity measures? Who still receives huge bonuses and has the Chancellor of the Exchequer fighting for them, in the European courts, because they want to fix pay in the banking sector?

originally posted by: Cobaltic1978
a reply to: crazyewok

So EU governments are now basically try to artificially fix and inflate prices. Seems to me of proof how banks and governments are in each others pockets.

It has taken this to make you realise this is going on?

Who started the financial collapse, who bailed them out and who has to pay for this through austerity measures? Who still receives huge bonuses and has the Chancellor of the Exchequer fighting for them, in the European courts, because they want to fix pay in the banking sector?

I figured this out long ago.

This is now just solid proof I hope the dumb can see. It all fixed.

a reply to: crazyewok

This article agrees with you. Here is a little snip.

So what should we expect? As the economy collapses, people will hoard and spend less. This is the check and balance against HYPERINFLATION. Furthermore, there are huge political ramifications involving a CORE RESERVE CURRENCY compared to Zimbabwe or Germany in the 1920s that cannot be ignored. The dollar cannot move into HYPERINFLATION for it is the reserve currency that would bring everything down with it. Empires do not die in that manner. The value of the dollar will certainly decline against assets, but it will not move into HYPERINFLATION. World War III would breakout before that. Capital cannot simply flee to yuan, Brazil or any other place, because if the reserve currency goes, so does everything else. China’s reserves would vanish overnight. The notion of HYPERINFLATION is nice – just not practical. Empires collapse they have never expired by HYPERINFLATION. When an empire dies that is the major reserve of all nations, we must be concerned about a complete meltdown and the breakup of the nation long-before HYPERINFLATION would even be possible.

It doesn't look good for the US or the petro dollar. Which sadly will screw all the western powers, and the world.
It will collapse and they know it. WW3 is their only option to try and save it.
The US is dying, but it will not go quietly I'm afraid.

I know your thread is about the UK, but I believe the symptoms you are talking about are a global issue.

This is worth a read.
www.lewrockwell.com... ll-of-empires/

Inflation is one of the critical levers to keep control of the masses in a 'democracy'. Here's the boiled down story. People feel good when they get more money. They notice the paycheck getting bigger, but don't notice the inflation raising prices so much. Your salary goes up $100 and each little price only goes up 10 cents...easy to see why you notice one and not the other. Wages rarely go down because people hate it. The only way for 'the powers that be' to get around this psychological fact is to maintain some inflation.

Another poster mentioned deflation is bad for debtors. That is very true...it makes your debt principle bigger and that is surely bad. Bad for you and...surprise surprise...bad for the money men that try to convince you debt is ok.

There you are. Boil away all the economic mumbo jumbo, deflation is a viscous circle BS and the truth is ugly. Inflation is a major tool to subjugate the population. At least Serfs looked their lords in the eye sometimes. We don't even get the privilege.

Have you ever listened to Jim Willie at The Golden Jackassa reply to: crazyewok

I started listening to him several years ago and at first I didn't believe much of what he said but it is coming true ....

Enter his "public area" and scroll down. I listened to this one today

Jim Willie radio interview 1-26-2015

Mild deflation is the natural state of prices, mainly due to productivity increases from process improvements and technology. Inflation is how banksters and politicians steal those savings from the working man. If prices drift gently down, even if you don't get an increase in pay your money buys more. Any deflation at all will spark a Keynesian to all manner of financial voodoo to spark inflation, everyone but bankers and politicians be damned.

Something as seemingly begnign as 2% annual inflation halves the value of a unit of currency in less than an average persons working life. ( rule of 72. 72/2 = 36 years). That value is stolen by bankers emmitting unbacked debt that competes with the dollars you earn for goods and services driving prices up. Complicit with the bankers are the politicians who spend more than they take in revenues emmiting debt that also increases the supply of money to compete with your currency thereby lowering the value of your currency.

Don't trust anyone who says that any deflation is bad. They look after banksters and politicians not you. Especially Krugman.