http://pragcap.com/the-cycle-of-deflation Sat, 26 May 2012 09:29:57 +0000 hourly 1 http://wordpress.org/?v=3.3.2 http://pragcap.com/the-cycle-of-deflation/comment-page-1#comment-12195 jt26 Fri, 26 Feb 2010 17:55:31 +0000 http://pragcap.com/?p=17535#comment-12195 Domestic services and assets will deflate. Dollar will decline relative to those countries which aren't printing money, which will create relative inflation in global goods (e.g. commodities). Depending on your lifestyle and asset mix, you may experience one, the other, or both. I think the worse hit has been the global working poor that had tried to put whatever meager savings in dollars (vs. Zimbabwe dollar) and now face food price inflation. Ahhh the US is looking out for #1, better luck next time. Domestic services and assets will deflate.
Dollar will decline relative to those countries which aren’t printing money, which will create relative inflation in global goods (e.g. commodities).
Depending on your lifestyle and asset mix, you may experience one, the other, or both.
I think the worse hit has been the global working poor that had tried to put whatever meager savings in dollars (vs. Zimbabwe dollar) and now face food price inflation. Ahhh the US is looking out for #1, better luck next time.

]]> http://pragcap.com/the-cycle-of-deflation/comment-page-1#comment-12180 mario Fri, 26 Feb 2010 15:22:51 +0000 http://pragcap.com/?p=17535#comment-12180 If they devalued the currency they could pay their debt. Even if exporting had a limited impact, they could pay off the original debts in devalued money. Nobody's saying it's a great idea, but it is a quick fix. If they devalued the currency they could pay their debt. Even if exporting had a limited impact, they could pay off the original debts in devalued money. Nobody’s saying it’s a great idea, but it is a quick fix.

]]> http://pragcap.com/the-cycle-of-deflation/comment-page-1#comment-12171 Sankalp Fri, 26 Feb 2010 11:18:45 +0000 http://pragcap.com/?p=17535#comment-12171 I don't agree with the Greece point. Had they not been part of the Euro-zone then their growth would not have escalated like it did between 2004-09. Moreover the theory that Greece could have exported their way out of financial trouble with their own currency is just false. They just don't export so much to have any significant impact on their national earnings. 18.2% of the GDP is just not good enough. Let's face it: Greece are in trouble because they played with debt and cooked their books. I don’t agree with the Greece point. Had they not been part of the Euro-zone then their growth would not have escalated like it did between 2004-09. Moreover the theory that Greece could have exported their way out of financial trouble with their own currency is just false. They just don’t export so much to have any significant impact on their national earnings. 18.2% of the GDP is just not good enough. Let’s face it: Greece are in trouble because they played with debt and cooked their books.

]]>