How long until hyper-deflation sets in?

renman95

Discuss.

Another future archived Bailey thread.

derryb

Hyper-deflation? Won't happen, there's a madman at the wheel.

cohodk

As I’ve noted before… QE, which doesn’t create jobs or GDP growth, does create inflation. The cost of everything is soaring in the US. Since 2002, the cost of just about every item you buy at the grocery store is up in a big way. Check out this list compiled at The Blaze: ·
Eggs: 73% ·
Coffee: 90% ·
Peanut Butter: 40% ·
Milk: 26% ·
A Loaf Of White Bread: 39% ·
Spaghetti And Macaroni: 44% ·
Orange Juice: 46% ·
Red Delicious Apples: 43% ·
Beer: 25% ·
Wine: 60% ·
Electricity: 42% ·
Margarine: 143% ·
Tomatoes: 22% ·
Turkey: 56% ·
Ground Beef:61% ·
Chocolate Chip Cookies: 39%


Federal minimum wage....up 41%

Funny how that works. QE does not create inflation. But increasing the amount of money one has to spend does. As does the velocity of that money.

derryb

<< <i>As I’ve noted before… QE, which doesn’t create jobs or GDP growth, does create inflation. The cost of everything is soaring in the US. Since 2002, the cost of just about every item you buy at the grocery store is up in a big way. Check out this list compiled at The Blaze: ·
Eggs: 73% ·
Coffee: 90% ·
Peanut Butter: 40% ·
Milk: 26% ·
A Loaf Of White Bread: 39% ·
Spaghetti And Macaroni: 44% ·
Orange Juice: 46% ·
Red Delicious Apples: 43% ·
Beer: 25% ·
Wine: 60% ·
Electricity: 42% ·
Margarine: 143% ·
Tomatoes: 22% ·
Turkey: 56% ·
Ground Beef:61% ·
Chocolate Chip Cookies: 39%


Federal minimum wage....up 41%

Funny how that works. QE does not create inflation. But increasing the amount of money one has to spend does. As does the velocity of that money. >>


QE increases the amount of money one has to spend. Are not the massive increases in government entitlement programs being funded by government debt which is in turn funded by QE purchases of that debt? So, what we have now are low income earners who still struggle to afford the necessities and who are more dependent on minimum wage increases and a whole lot more entitlement dollars. QE is being used to fund greater needs that were created by inflation. It is an economic fact that more dollars (higher minimum wage and exploding government entitlements) chasing goods will drive up the price of those goods.

Inflation is the sole reason that minimum wage/cost of living increases are even necessary. And since you acknowledge the affect of money velocity on inflation, is not the current decline in inflation a direct result of the decline in money velocity?

bronco2078

How much can we trust those food inflation numbers? Does it take into account the shrinking package sizes , i.e. 7 oz jars of coffee instead of 8 or 12 oz that we had before ?


What about horse meat in TV dinners and ketchup as a vegetable in school lunches?

jmski52

I haven't seen the Post Office lower their rates yet, or ever, in fact. It's somewhat hilarious to see one government entity squeal about how they need increases in rates because they can't fund operations, while private industry eats their lunch through competition.

And while all this is going on, the rest of the government is bloating itself beyond any previously recognizable semblance of basic government function because we ordinary people just can't live without more regulation, more taxes, more interference, more cost overruns and more wild spending at IRS training sessions and White House junkets.

To punish the private sector even more, sequestration only furlows the private contractors, not government employees, and yet the ghouls in congress continue to dramatize the imaginary cuts that are only modest decreases in the rate of increase. What BS.

To answer the OP's question, the drop dead date is when Bernanke retires. Until then, he won't let deflation happen. He promised, and we should know by now that his word is as good as..........as..........as..........

cohodk

Inflation is the sole reason that minimum wage/cost of living increases are even necessary. And since you acknowledge the affect of money velocity on inflation, is not the current decline in inflation a direct result of the decline in money velocity?

Chicken or egg? Minimum wage creates inflation--thats what I believe. Prices CAN NOT INCREASE unless people can accept those increase. Stop giving people more money and prices will stop increasing. And yes, money is not circulating so no inflation. Just as I professed years ago.

Musky1011

when the usa dollar is no longer the world reserve currency