Yes, I’ll have some of that deflation if you don’t mind. It is due to us. Stop telling us that it is bad for us because that is a lie !
A little deflation of a modest rate for at least 18 months is due to the economy.
After all the inflation the past 10 years that did not inflate wages. Deflation is due to the consumer to bust this inflation bubble with a little deflation. There is no other way to bring the middle class just a little bit back from where they were.
Keep in mind the Fed has not really counted the inflation the consumer has went through for some time now. Have not your utilities went up 30% or more in the last 3 years. Don’t you think your food bills have went up 20% or more in the same time. Not to mention the cost of insurance or your car or the maintenance on it or the fuel that makes it go…. even you cable bill… … although that is a story in it’s own.
No, they have only really worried about wage inflation that has not happened and perhaps has gone lower because those that lost their good paying job are working others job(s) at a much lower rate if they are working at all. And that lower wage does not include the real inflation we have all just been through. Those that did not loose their jobs and remained working have not seen wage growth of more than 3% in the same time. Of course, unless you work on/for Wall Street.
All the Conservative economist and the Fed remind us what happened in Germany nearly a century ago as example of what deflation looks like. I say Bull$hit ! They have the ability to control it rate and is well defined. I think they only fear it for corporate interest and perhaps the budget defecate. Germany made their own problems worse back then and had little control of panic. I would think the Fed has a lot of control on panic as demonstrated after the banks collapsed. I truly believe that a deflation rate of 1.5% for two years would bring the economy back better than it was before the bank crash.
Deflation… Bring It On !
The consumer has been squeezed like a orange and has little juice left to drive the economy. It’s just one of the problems of having a completely consumer driven economy. And since we get no action from congress who controls spending, you are not going to get anyone to bring back any kind of balance for the economy to grow for all of us. So in fact, we have 10% to many people in this economy if you want to look at it that way. Yes 10% of us are never going to come back to the economy and will only pose a burden to the rest of the working. Who knows who will get the blame 6-8 years in the future when it is realized but reality is that it has been in Congresses hands now and we get nothing.
Try to remember that when you go to the polls.
-Elect independents ! -Deny both party’s a majority.