RE: RE: RE: RE: EmotionsCurvature. I appreciate your effort but, I’m have trouble understanding why you say “the general consensus is that the US consumer will continue to save at higher rates” and where do you see deflation?
I wasn’t schooled in “economics 101” so I may be suffering my ignorance. Please excuse me if so.
My understanding is that there are two perceptions of inflation. The common one could be described as ‘higher prices’. The less common understanding is what mostly causes higher prices and that would be an increase in the money supply.
Now, after roughly a decade of increased USA government and IMF programs, much more money needs to be supplied to pay for it all. And while the corporations lobby our economy elsewhere, more and more Americans are finding themselves with less of an income.
From my point of view as an American, the only place we can find “deflation” is in the value of our homes and our pay checks while everything else that we need for our survival continues to be priced higher (especially real money).
The only “under the mattress savings” that I see are in places such as China, Japan and then also Canada as the exporters to the USA have accumulated a lot of ‘inflation’. And while China isn’t likely to dump its holding of USA treasuries overnight, they are no longer the biggest consumer of my government’s inflation as they are now out-bid (to put it nicely) by the Federal Reserve Bank of Jekyll Island. And while those foreign held dollars currently do not contribute to the “speed in which money actually changes hands”, they will threaten USA dollar value until they liquidate just as does Granny’s T-Bonds.
So my friend, please help me to understand how “the general consensus is that the US consumer will continue to save at higher rates” and where do you see deflation?
Thank you!
Bogapet. I was playing you. I know your only holding two pair.
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mineshack
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