Quantitative Easing

[tabnloz]

ECB just announced negative deposit rates for commercial banks as a measure to fight deflation.

Strength of the currency should be view as a good sign as there is demand of the currency at the world stage.

Artificially pushing down the rate will cause import and export imbalance as well as wages distortion.

Yes but the way I understand it is that the game being played at the moment is that the US & China position themselves as lower than the Euro, therefore their exports are cheaper to purchase.

Getting your currency lower is all part of the beggar thy neighbor aspect of QE; if your currency is worth more you will be less competitive in export markets, even though a stronger currency may indicate better 'health'.

[blackhathasher]

That is your notion of inflation, not the one you will read in most textbooks on economics.

"In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time.[1] When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation reflects a reduction in the purchasing power per unit of money – a loss of real value in the medium of exchange and unit of account within the economy.[2][3] A chief measure of price inflation is the inflation rate, the annualized percentage change in a general price index (normally the consumer price index) over time.[4"

Sir, this is the worst, manipulative post i have ever seen. The above quote is from Wikipedia, BUT you have intentionally erased a line from the definition. The original looks like this:

"In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time.[1] It can be defined as too much money chasing too few goods.

YEP it is pretty clear that user: "Trading" is a douche Fed lapdog with no integrity.

QE IS INFLATION.

INFLATION IS BAD (no matter how try to justify it)

Banks, manufacturers, governments, currencies and everyone should be allowed to fail. In their wake better solutions will arise.

Look at Mt Gox. They sucked. They failed. Now better exchanges rule the landscape. Bitcoin and a truly free market will prevail.

[Harley997]

ECB just announced negative deposit rates for commercial banks as a measure to fight deflation.

Strength of the currency should be view as a good sign as there is demand of the currency at the world stage.

Artificially pushing down the rate will cause import and export imbalance as well as wages distortion.

Yes but the way I understand it is that the game being played at the moment is that the US & China position themselves as lower than the Euro, therefore their exports are cheaper to purchase.

Getting your currency lower is all part of the beggar thy neighbor aspect of QE; if your currency is worth more you will be less competitive in export markets, even though a stronger currency may indicate better 'health'.

A major effect of QE is that it makes it much cheaper to borrow money. It also makes it cheaper to repay money that is borrowed in terms of effort (labor/work)

[ShakyhandsBTCer]

That is your notion of inflation, not the one you will read in most textbooks on economics.

"In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time.[1] When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation reflects a reduction in the purchasing power per unit of money – a loss of real value in the medium of exchange and unit of account within the economy.[2][3] A chief measure of price inflation is the inflation rate, the annualized percentage change in a general price index (normally the consumer price index) over time.[4"

Sir, this is the worst, manipulative post i have ever seen. The above quote is from Wikipedia, BUT you have intentionally erased a line from the definition. The original looks like this:

"In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time.[1] It can be defined as too much money chasing too few goods.

YEP it is pretty clear that user: "Trading" is a douche Fed lapdog with no integrity.

QE IS INFLATION.

INFLATION IS BAD (no matter how try to justify it)

Banks, manufacturers, governments, currencies and everyone should be allowed to fail. In their wake better solutions will arise.

Look at Mt Gox. They sucked. They failed. Now better exchanges rule the landscape. Bitcoin and a truly free market will prevail.

Inflation in general is bad, but the opposite, deflation is much worse. With deflation people will wait until "tomorrow" when prices will fall, causing prices to fall even more, causing people to delay their purchases even longer. This results in a decreased level of economic activity.

Inflation needs to be kept at a low level but not so low that deflation is a threat.

[tabnloz]

That is your notion of inflation, not the one you will read in most textbooks on economics.

"In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time.[1] When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation reflects a reduction in the purchasing power per unit of money – a loss of real value in the medium of exchange and unit of account within the economy.[2][3] A chief measure of price inflation is the inflation rate, the annualized percentage change in a general price index (normally the consumer price index) over time.[4"

Sir, this is the worst, manipulative post i have ever seen. The above quote is from Wikipedia, BUT you have intentionally erased a line from the definition. The original looks like this:

"In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time.[1] It can be defined as too much money chasing too few goods.

YEP it is pretty clear that user: "Trading" is a douche Fed lapdog with no integrity.

QE IS INFLATION.

INFLATION IS BAD (no matter how try to justify it)

Banks, manufacturers, governments, currencies and everyone should be allowed to fail. In their wake better solutions will arise.

Look at Mt Gox. They sucked. They failed. Now better exchanges rule the landscape. Bitcoin and a truly free market will prevail.

Inflation in general is bad, but the opposite, deflation is much worse. With deflation people will wait until "tomorrow" when prices will fall, causing prices to fall even more, causing people to delay their purchases even longer. This results in a decreased level of economic activity.

Inflation needs to be kept at a low level but not so low that deflation is a threat.

If I am burdened by a large debt (mortgage, toxic MBS's, multiple trillions in national debt) then inflation is the manna from God. It will wipe away my debt by making it worth less.

If I am not burdened by debt (cash in bank, secure job, no mortgage) then deflation is the ants pants as prices decline and I can purchase goods when I believe the price is fair.

I know that mobile phones, TV's etc are going to be much better in the coming years but I still buy them. The model I buy will be much cheaper next year if not next month. I still buy because I want the item. The market would always find a bottom when enough people think it is fairly priced. Shit businesses loaded by debt fail and new ones replace them that figure out how to do things better. I'm not sure I believe that deflation is the devil like you're saying.

[Harley997]

That is your notion of inflation, not the one you will read in most textbooks on economics.

"In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time.[1] When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation reflects a reduction in the purchasing power per unit of money – a loss of real value in the medium of exchange and unit of account within the economy.[2][3] A chief measure of price inflation is the inflation rate, the annualized percentage change in a general price index (normally the consumer price index) over time.[4"

Sir, this is the worst, manipulative post i have ever seen. The above quote is from Wikipedia, BUT you have intentionally erased a line from the definition. The original looks like this:

"In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time.[1] It can be defined as too much money chasing too few goods.

YEP it is pretty clear that user: "Trading" is a douche Fed lapdog with no integrity.

QE IS INFLATION.

INFLATION IS BAD (no matter how try to justify it)

Banks, manufacturers, governments, currencies and everyone should be allowed to fail. In their wake better solutions will arise.

Look at Mt Gox. They sucked. They failed. Now better exchanges rule the landscape. Bitcoin and a truly free market will prevail.

Inflation in general is bad, but the opposite, deflation is much worse. With deflation people will wait until "tomorrow" when prices will fall, causing prices to fall even more, causing people to delay their purchases even longer. This results in a decreased level of economic activity.

Inflation needs to be kept at a low level but not so low that deflation is a threat.

If I am burdened by a large debt (mortgage, toxic MBS's, multiple trillions in national debt) then inflation is the manna from God. It will wipe away my debt by making it worth less.

If I am not burdened by debt (cash in bank, secure job, no mortgage) then deflation is the ants pants as prices decline and I can purchase goods when I believe the price is fair.

I know that mobile phones, TV's etc are going to be much better in the coming years but I still buy them. The model I buy will be much cheaper next year if not next month. I still buy because I want the item. The market would always find a bottom when enough people think it is fairly priced. Shit businesses loaded by debt fail and new ones replace them that figure out how to do things better. I'm not sure I believe that deflation is the devil like you're saying.

Deflation is bad because it leads to lower economic output. It often causes recessions and depressions.

Even if you are not burdened by debt (the security of your job is not relevant) then your income would likely go down or possibly go away and there is a greater chance you will be without work. Most people without debt still rely heavily on their income from working which would be hurt by deflation.

[tabnloz]

That is your notion of inflation, not the one you will read in most textbooks on economics.

"In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time.[1] When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation reflects a reduction in the purchasing power per unit of money – a loss of real value in the medium of exchange and unit of account within the economy.[2][3] A chief measure of price inflation is the inflation rate, the annualized percentage change in a general price index (normally the consumer price index) over time.[4"

Sir, this is the worst, manipulative post i have ever seen. The above quote is from Wikipedia, BUT you have intentionally erased a line from the definition. The original looks like this:

"In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time.[1] It can be defined as too much money chasing too few goods.

YEP it is pretty clear that user: "Trading" is a douche Fed lapdog with no integrity.

QE IS INFLATION.

INFLATION IS BAD (no matter how try to justify it)

Banks, manufacturers, governments, currencies and everyone should be allowed to fail. In their wake better solutions will arise.

Look at Mt Gox. They sucked. They failed. Now better exchanges rule the landscape. Bitcoin and a truly free market will prevail.

Inflation in general is bad, but the opposite, deflation is much worse. With deflation people will wait until "tomorrow" when prices will fall, causing prices to fall even more, causing people to delay their purchases even longer. This results in a decreased level of economic activity.

Inflation needs to be kept at a low level but not so low that deflation is a threat.

If I am burdened by a large debt (mortgage, toxic MBS's, multiple trillions in national debt) then inflation is the manna from God. It will wipe away my debt by making it worth less.

If I am not burdened by debt (cash in bank, secure job, no mortgage) then deflation is the ants pants as prices decline and I can purchase goods when I believe the price is fair.

I know that mobile phones, TV's etc are going to be much better in the coming years but I still buy them. The model I buy will be much cheaper next year if not next month. I still buy because I want the item. The market would always find a bottom when enough people think it is fairly priced. Shit businesses loaded by debt fail and new ones replace them that figure out how to do things better. I'm not sure I believe that deflation is the devil like you're saying.

Deflation is bad because it leads to lower economic output. It often causes recessions and depressions.

Even if you are not burdened by debt (the security of your job is not relevant) then your income would likely go down or possibly go away and there is a greater chance you will be without work. Most people without debt still rely heavily on their income from working which would be hurt by deflation.

The security of my job is relevant as a secure job produces a regular paycheck. If you have a secure income in deflationary environments then your purchasing power increases as your income remains stable.

There is no way out of this QE mess without deflation. Japan has QE'd for 20 years and still cannot shake it (different scenario in some respects and some - Keiser particularly - even argue that QE begets deflation.)

But anyway, there is always room for conflicting opinions. I dont think there is a way to stop QE without deflation taking over, and it cannot continue indefinitely.

[ShakyhandsBTCer]

That is your notion of inflation, not the one you will read in most textbooks on economics.

"In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time.[1] When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation reflects a reduction in the purchasing power per unit of money – a loss of real value in the medium of exchange and unit of account within the economy.[2][3] A chief measure of price inflation is the inflation rate, the annualized percentage change in a general price index (normally the consumer price index) over time.[4"

Sir, this is the worst, manipulative post i have ever seen. The above quote is from Wikipedia, BUT you have intentionally erased a line from the definition. The original looks like this:

"In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time.[1] It can be defined as too much money chasing too few goods.

YEP it is pretty clear that user: "Trading" is a douche Fed lapdog with no integrity.

QE IS INFLATION.

INFLATION IS BAD (no matter how try to justify it)

Banks, manufacturers, governments, currencies and everyone should be allowed to fail. In their wake better solutions will arise.

Look at Mt Gox. They sucked. They failed. Now better exchanges rule the landscape. Bitcoin and a truly free market will prevail.

Inflation in general is bad, but the opposite, deflation is much worse. With deflation people will wait until "tomorrow" when prices will fall, causing prices to fall even more, causing people to delay their purchases even longer. This results in a decreased level of economic activity.

Inflation needs to be kept at a low level but not so low that deflation is a threat.

If I am burdened by a large debt (mortgage, toxic MBS's, multiple trillions in national debt) then inflation is the manna from God. It will wipe away my debt by making it worth less.

If I am not burdened by debt (cash in bank, secure job, no mortgage) then deflation is the ants pants as prices decline and I can purchase goods when I believe the price is fair.

I know that mobile phones, TV's etc are going to be much better in the coming years but I still buy them. The model I buy will be much cheaper next year if not next month. I still buy because I want the item. The market would always find a bottom when enough people think it is fairly priced. Shit businesses loaded by debt fail and new ones replace them that figure out how to do things better. I'm not sure I believe that deflation is the devil like you're saying.

Deflation is bad because it leads to lower economic output. It often causes recessions and depressions.

Even if you are not burdened by debt (the security of your job is not relevant) then your income would likely go down or possibly go away and there is a greater chance you will be without work. Most people without debt still rely heavily on their income from working which would be hurt by deflation.

The security of my job is relevant as a secure job produces a regular paycheck. If you have a secure income in deflationary environments then your purchasing power increases as your income remains stable.

There is no way out of this QE mess without deflation. Japan has QE'd for 20 years and still cannot shake it (different scenario in some respects and some - Keiser particularly - even argue that QE begets deflation.)

But anyway, there is always room for conflicting opinions. I dont think there is a way to stop QE without deflation taking over, and it cannot continue indefinitely.

In a economy experiencing deflation, there tends to be less work available. Even if your job is "secure" today it is less likely to be secure during a time that an economy is experiencing deflation. You would also face the risk that your employer still needs you to work but cannot afford to pay you as much per hour (or per year) and were to cut your salary.   

[Leina]

That is your notion of inflation, not the one you will read in most textbooks on economics.

"In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time.[1] When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation reflects a reduction in the purchasing power per unit of money – a loss of real value in the medium of exchange and unit of account within the economy.[2][3] A chief measure of price inflation is the inflation rate, the annualized percentage change in a general price index (normally the consumer price index) over time.[4"

Sir, this is the worst, manipulative post i have ever seen. The above quote is from Wikipedia, BUT you have intentionally erased a line from the definition. The original looks like this:

"In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time.[1] It can be defined as too much money chasing too few goods.

YEP it is pretty clear that user: "Trading" is a douche Fed lapdog with no integrity.

QE IS INFLATION.

INFLATION IS BAD (no matter how try to justify it)

Banks, manufacturers, governments, currencies and everyone should be allowed to fail. In their wake better solutions will arise.

Look at Mt Gox. They sucked. They failed. Now better exchanges rule the landscape. Bitcoin and a truly free market will prevail.

Inflation in general is bad, but the opposite, deflation is much worse. With deflation people will wait until "tomorrow" when prices will fall, causing prices to fall even more, causing people to delay their purchases even longer. This results in a decreased level of economic activity.

Inflation needs to be kept at a low level but not so low that deflation is a threat.

If I am burdened by a large debt (mortgage, toxic MBS's, multiple trillions in national debt) then inflation is the manna from God. It will wipe away my debt by making it worth less.

If I am not burdened by debt (cash in bank, secure job, no mortgage) then deflation is the ants pants as prices decline and I can purchase goods when I believe the price is fair.

I know that mobile phones, TV's etc are going to be much better in the coming years but I still buy them. The model I buy will be much cheaper next year if not next month. I still buy because I want the item. The market would always find a bottom when enough people think it is fairly priced. Shit businesses loaded by debt fail and new ones replace them that figure out how to do things better. I'm not sure I believe that deflation is the devil like you're saying.

Deflation is bad because it leads to lower economic output. It often causes recessions and depressions.

Even if you are not burdened by debt (the security of your job is not relevant) then your income would likely go down or possibly go away and there is a greater chance you will be without work. Most people without debt still rely heavily on their income from working which would be hurt by deflation.

The security of my job is relevant as a secure job produces a regular paycheck. If you have a secure income in deflationary environments then your purchasing power increases as your income remains stable.

There is no way out of this QE mess without deflation. Japan has QE'd for 20 years and still cannot shake it (different scenario in some respects and some - Keiser particularly - even argue that QE begets deflation.)

But anyway, there is always room for conflicting opinions. I dont think there is a way to stop QE without deflation taking over, and it cannot continue indefinitely.

In a economy experiencing deflation, there tends to be less work available. Even if your job is "secure" today it is less likely to be secure during a time that an economy is experiencing deflation. You would also face the risk that your employer still needs you to work but cannot afford to pay you as much per hour (or per year) and were to cut your salary.   

People need to be dynamic and change job to meet market demand. Not the other way around.

[ShakyhandsBTCer]

That is your notion of inflation, not the one you will read in most textbooks on economics.

"In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time.[1] When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation reflects a reduction in the purchasing power per unit of money – a loss of real value in the medium of exchange and unit of account within the economy.[2][3] A chief measure of price inflation is the inflation rate, the annualized percentage change in a general price index (normally the consumer price index) over time.[4"

Sir, this is the worst, manipulative post i have ever seen. The above quote is from Wikipedia, BUT you have intentionally erased a line from the definition. The original looks like this:

"In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time.[1] It can be defined as too much money chasing too few goods.

YEP it is pretty clear that user: "Trading" is a douche Fed lapdog with no integrity.

QE IS INFLATION.

INFLATION IS BAD (no matter how try to justify it)

Banks, manufacturers, governments, currencies and everyone should be allowed to fail. In their wake better solutions will arise.

Look at Mt Gox. They sucked. They failed. Now better exchanges rule the landscape. Bitcoin and a truly free market will prevail.

Inflation in general is bad, but the opposite, deflation is much worse. With deflation people will wait until "tomorrow" when prices will fall, causing prices to fall even more, causing people to delay their purchases even longer. This results in a decreased level of economic activity.

Inflation needs to be kept at a low level but not so low that deflation is a threat.

If I am burdened by a large debt (mortgage, toxic MBS's, multiple trillions in national debt) then inflation is the manna from God. It will wipe away my debt by making it worth less.

If I am not burdened by debt (cash in bank, secure job, no mortgage) then deflation is the ants pants as prices decline and I can purchase goods when I believe the price is fair.

I know that mobile phones, TV's etc are going to be much better in the coming years but I still buy them. The model I buy will be much cheaper next year if not next month. I still buy because I want the item. The market would always find a bottom when enough people think it is fairly priced. Shit businesses loaded by debt fail and new ones replace them that figure out how to do things better. I'm not sure I believe that deflation is the devil like you're saying.

Deflation is bad because it leads to lower economic output. It often causes recessions and depressions.

Even if you are not burdened by debt (the security of your job is not relevant) then your income would likely go down or possibly go away and there is a greater chance you will be without work. Most people without debt still rely heavily on their income from working which would be hurt by deflation.

The security of my job is relevant as a secure job produces a regular paycheck. If you have a secure income in deflationary environments then your purchasing power increases as your income remains stable.

There is no way out of this QE mess without deflation. Japan has QE'd for 20 years and still cannot shake it (different scenario in some respects and some - Keiser particularly - even argue that QE begets deflation.)

But anyway, there is always room for conflicting opinions. I dont think there is a way to stop QE without deflation taking over, and it cannot continue indefinitely.

In a economy experiencing deflation, there tends to be less work available. Even if your job is "secure" today it is less likely to be secure during a time that an economy is experiencing deflation. You would also face the risk that your employer still needs you to work but cannot afford to pay you as much per hour (or per year) and were to cut your salary.   

People need to be dynamic and change job to meet market demand. Not the other way around.

That is true but is not always possible if there are not jobs available.

[Harley997]

That is your notion of inflation, not the one you will read in most textbooks on economics.

"In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time.[1] When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation reflects a reduction in the purchasing power per unit of money – a loss of real value in the medium of exchange and unit of account within the economy.[2][3] A chief measure of price inflation is the inflation rate, the annualized percentage change in a general price index (normally the consumer price index) over time.[4"

Sir, this is the worst, manipulative post i have ever seen. The above quote is from Wikipedia, BUT you have intentionally erased a line from the definition. The original looks like this:

"In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time.[1] It can be defined as too much money chasing too few goods.

YEP it is pretty clear that user: "Trading" is a douche Fed lapdog with no integrity.

QE IS INFLATION.

INFLATION IS BAD (no matter how try to justify it)

Banks, manufacturers, governments, currencies and everyone should be allowed to fail. In their wake better solutions will arise.

Look at Mt Gox. They sucked. They failed. Now better exchanges rule the landscape. Bitcoin and a truly free market will prevail.

Inflation in general is bad, but the opposite, deflation is much worse. With deflation people will wait until "tomorrow" when prices will fall, causing prices to fall even more, causing people to delay their purchases even longer. This results in a decreased level of economic activity.

Inflation needs to be kept at a low level but not so low that deflation is a threat.

If I am burdened by a large debt (mortgage, toxic MBS's, multiple trillions in national debt) then inflation is the manna from God. It will wipe away my debt by making it worth less.

If I am not burdened by debt (cash in bank, secure job, no mortgage) then deflation is the ants pants as prices decline and I can purchase goods when I believe the price is fair.

I know that mobile phones, TV's etc are going to be much better in the coming years but I still buy them. The model I buy will be much cheaper next year if not next month. I still buy because I want the item. The market would always find a bottom when enough people think it is fairly priced. Shit businesses loaded by debt fail and new ones replace them that figure out how to do things better. I'm not sure I believe that deflation is the devil like you're saying.

Deflation is bad because it leads to lower economic output. It often causes recessions and depressions.

Even if you are not burdened by debt (the security of your job is not relevant) then your income would likely go down or possibly go away and there is a greater chance you will be without work. Most people without debt still rely heavily on their income from working which would be hurt by deflation.

The security of my job is relevant as a secure job produces a regular paycheck. If you have a secure income in deflationary environments then your purchasing power increases as your income remains stable.

There is no way out of this QE mess without deflation. Japan has QE'd for 20 years and still cannot shake it (different scenario in some respects and some - Keiser particularly - even argue that QE begets deflation.)

But anyway, there is always room for conflicting opinions. I dont think there is a way to stop QE without deflation taking over, and it cannot continue indefinitely.

QE would need to be taken away very gradually.

Even with QE Japan has experienced deflation

[tabnloz]

That is your notion of inflation, not the one you will read in most textbooks on economics.

"In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time.[1] When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation reflects a reduction in the purchasing power per unit of money – a loss of real value in the medium of exchange and unit of account within the economy.[2][3] A chief measure of price inflation is the inflation rate, the annualized percentage change in a general price index (normally the consumer price index) over time.[4"

Sir, this is the worst, manipulative post i have ever seen. The above quote is from Wikipedia, BUT you have intentionally erased a line from the definition. The original looks like this:

"In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time.[1] It can be defined as too much money chasing too few goods.

YEP it is pretty clear that user: "Trading" is a douche Fed lapdog with no integrity.

QE IS INFLATION.

INFLATION IS BAD (no matter how try to justify it)

Banks, manufacturers, governments, currencies and everyone should be allowed to fail. In their wake better solutions will arise.

Look at Mt Gox. They sucked. They failed. Now better exchanges rule the landscape. Bitcoin and a truly free market will prevail.

Inflation in general is bad, but the opposite, deflation is much worse. With deflation people will wait until "tomorrow" when prices will fall, causing prices to fall even more, causing people to delay their purchases even longer. This results in a decreased level of economic activity.

Inflation needs to be kept at a low level but not so low that deflation is a threat.

If I am burdened by a large debt (mortgage, toxic MBS's, multiple trillions in national debt) then inflation is the manna from God. It will wipe away my debt by making it worth less.

If I am not burdened by debt (cash in bank, secure job, no mortgage) then deflation is the ants pants as prices decline and I can purchase goods when I believe the price is fair.

I know that mobile phones, TV's etc are going to be much better in the coming years but I still buy them. The model I buy will be much cheaper next year if not next month. I still buy because I want the item. The market would always find a bottom when enough people think it is fairly priced. Shit businesses loaded by debt fail and new ones replace them that figure out how to do things better. I'm not sure I believe that deflation is the devil like you're saying.

Deflation is bad because it leads to lower economic output. It often causes recessions and depressions.

Even if you are not burdened by debt (the security of your job is not relevant) then your income would likely go down or possibly go away and there is a greater chance you will be without work. Most people without debt still rely heavily on their income from working which would be hurt by deflation.

The security of my job is relevant as a secure job produces a regular paycheck. If you have a secure income in deflationary environments then your purchasing power increases as your income remains stable.

There is no way out of this QE mess without deflation. Japan has QE'd for 20 years and still cannot shake it (different scenario in some respects and some - Keiser particularly - even argue that QE begets deflation.)

But anyway, there is always room for conflicting opinions. I dont think there is a way to stop QE without deflation taking over, and it cannot continue indefinitely.

QE would need to be taken away very gradually.

Even with QE Japan has experienced deflation

But you can't taper a ponzi scheme which is what this is. But now it is absolutely global. The hot money from countries & governments flows into global RE 'safe' spots (London, Canada, Australia) where the investment monies are at least out of harms way. Us plebs are also enticed into RE: ZIRP for savers, govt led spruiking (UK), FOMO (Aust)

With the stocks more and more people need to join the 'market' as new money makes it go up. As soon as the free money for big investment firms is gone, the music stops. How many chairs are left?

Companies are resorting to share buy backs, mergers, part time employees and margin compression to maintain the illusion.

Japan nothing has worked; an ageing population of savers, a generation not popping out kids, flatlined RE, massive debt overhang. Probably won't change until Japan does.

[Erdogan]

As the public discovers that the current system is unsustainable (if they do) you will hear about paying back or at least tapering (expanding the money+debt supply less than that other political fraction would have done, had they won the election).

But both is out of the question really. It is not possible to taper (reducing the rate of expansion), and it is not possible to increase the interest rate.

Look for tapering talk, and at the same time covert debt expansion. Fake companies issuing bonds, loans parked in bad banks. New forms of securities issued. Government guarantees. Implicit government guaranties. Even a political statement like we have to stop global warning increases lending and thus the money+debt supply.

[ShakyhandsBTCer]

As the public discovers that the current system is unsustainable (if they do) you will hear about paying back or at least tapering (expanding the money+debt supply less than that other political fraction would have done, had they won the election).

But both is out of the question really. It is not possible to taper (reducing the rate of expansion), and it is not possible to increase the interest rate.

Look for tapering talk, and at the same time covert debt expansion. Fake companies issuing bonds, loans parked in bad banks. New forms of securities issued. Government guarantees. Implicit government guaranties. Even a political statement like we have to stop global warning increases lending and thus the money+debt supply.

They have already started to taper the rate of QE.

The FED had increased interest rate before and will do it again eventually

[wenben]

As the public discovers that the current system is unsustainable (if they do) you will hear about paying back or at least tapering (expanding the money+debt supply less than that other political fraction would have done, had they won the election).

But both is out of the question really. It is not possible to taper (reducing the rate of expansion), and it is not possible to increase the interest rate.

Look for tapering talk, and at the same time covert debt expansion. Fake companies issuing bonds, loans parked in bad banks. New forms of securities issued. Government guarantees. Implicit government guaranties. Even a political statement like we have to stop global warning increases lending and thus the money+debt supply.

They have already started to taper the rate of QE.

The FED had increased interest rate before and will do it again eventually

To keep the rate low, the fed needs to keep buying up unsustainable amount of debt. One only has to observe the interest rate to see if they actually taper rather than sing a good song.

[ShakyhandsBTCer]

As the public discovers that the current system is unsustainable (if they do) you will hear about paying back or at least tapering (expanding the money+debt supply less than that other political fraction would have done, had they won the election).

But both is out of the question really. It is not possible to taper (reducing the rate of expansion), and it is not possible to increase the interest rate.

Look for tapering talk, and at the same time covert debt expansion. Fake companies issuing bonds, loans parked in bad banks. New forms of securities issued. Government guarantees. Implicit government guaranties. Even a political statement like we have to stop global warning increases lending and thus the money+debt supply.

They have already started to taper the rate of QE.

The FED had increased interest rate before and will do it again eventually

To keep the rate low, the fed needs to keep buying up unsustainable amount of debt. One only has to observe the interest rate to see if they actually taper rather than sing a good song.

There are other forces behind interest rates besides the rate at which the Fed purchases bonds

[ALToids]

That is your notion of inflation, not the one you will read in most textbooks on economics.

"In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time.[1] When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation reflects a reduction in the purchasing power per unit of money – a loss of real value in the medium of exchange and unit of account within the economy.[2][3] A chief measure of price inflation is the inflation rate, the annualized percentage change in a general price index (normally the consumer price index) over time.[4"

Sir, this is the worst, manipulative post i have ever seen. The above quote is from Wikipedia, BUT you have intentionally erased a line from the definition. The original looks like this:

"In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time.[1] It can be defined as too much money chasing too few goods.

YEP it is pretty clear that user: "Trading" is a douche Fed lapdog with no integrity.

QE IS INFLATION.

INFLATION IS BAD (no matter how try to justify it)

Banks, manufacturers, governments, currencies and everyone should be allowed to fail. In their wake better solutions will arise.

Look at Mt Gox. They sucked. They failed. Now better exchanges rule the landscape. Bitcoin and a truly free market will prevail.

Inflation in general is bad, but the opposite, deflation is much worse. With deflation people will wait until "tomorrow" when prices will fall, causing prices to fall even more, causing people to delay their purchases even longer. This results in a decreased level of economic activity.

Inflation needs to be kept at a low level but not so low that deflation is a threat.

When was the last time you saw people wait when the new iPhones come out.  I swear the people are taking their disability checks and running full sprint to the Apple store to wait in line for 12 hours.

[madken7777]

QE would need to be taken away very gradually.

Even with QE Japan has experienced deflation

QE in Japan doesn't work because price level has gone to unrealistic level. Property and security price are governed by yield and return of investment, if they go up to unsustainable level, the cost will of course need to go down. Printing a lot of money will only make smart money leave the country to seek better yield and reasonable ROI business.

[Swordsoffreedom]

QE would need to be taken away very gradually.

Even with QE Japan has experienced deflation

QE in Japan doesn't work because price level has gone to unrealistic level. Property and security price are governed by yield and return of investment, if they go up to unsustainable level, the cost will of course need to go down. Printing a lot of money will only make smart money leave the country to seek better yield and reasonable ROI business.

Japans a bit weird in that their debt is larger than their GDP by a significant amount but people trust that their money will not be lost or stolen in the system or the currency will collapse.
Benefits of having your own citizens holding the debt still to get ROI would be a significant challenge for them and they can't really print money to increase their debt so its a bit of a conundrum.

[fdiini]

QE would need to be taken away very gradually.

Even with QE Japan has experienced deflation

QE in Japan doesn't work because price level has gone to unrealistic level. Property and security price are governed by yield and return of investment, if they go up to unsustainable level, the cost will of course need to go down. Printing a lot of money will only make smart money leave the country to seek better yield and reasonable ROI business.

Japans a bit weird in that their debt is larger than their GDP by a significant amount but people trust that their money will not be lost or stolen in the system or the currency will collapse.
Benefits of having your own citizens holding the debt still to get ROI would be a significant challenge for them and they can't really print money to increase their debt so its a bit of a conundrum.

Debt larger than GDP is fine. A more meaningful measurement would be the country income vs debt level. So long as the country has good income via export and service, the debt can be expected to be paid back.