Deflation is coming and you can't run from it

a reply to: Slichter

Harbor Freight Index (HFI) IS currently holding at a rate of change of .15%

But that is temporary.

Source is my last visit to Harbor Freight.

originally posted by: toysforadults
a reply to: Bluntone22

I was kinda young when it happened but due to the lasting impact it's had on my age group I decided to really dig into why and what happened and what went wrong.

I remember that! I was 25. My parents had a $220,000 house built in one of the nicest neighborhoods in town a few years prior as it was expanding and adding some cheaper options, lol. My Mother was horrible with bills and financing, usually incurring way too much debt and being late on things. They had to declare bankruptcy I believe.

Anyways, we ended up being foreclosed on and lived in side by side motel rooms for a year on a monthly rate. My parents, two sisters, a neice, 3 cats and 3 small dogs. Eventually they found a house to rent, not sure why it took so long.

originally posted by: Lumenari

originally posted by: toysforadults
a reply to: Lumenari

The main issue really is that asset values (probably mostly due to inflation and bad policy by the Kensyian government to offer corporate welfare) have ran away from the general public

If that issue corrects we will be in much better shape

I agree, with a minor caveat...

Keynesian policies might have actually worked.... in essence, a government (or business) should save in boom times, spend in busts.

When the government adopted Keynesian policy, what soon happened was that our government spent in the boom times, spent in the busts.

So it wasn't really a good test run, as it were.

Although I prefer Hayek's thoughts on the matter as more realistic.

do you have a link I would like to read for Hayek I haven't read much on him

and I am still contemplating the benefits of Kensyian policy. I can see how they work at times but the kensyians have essentially propped up a fake market through subsidy both corporate and social

I really want to return back to free market policies with a caveat of my own

publicly owned (state level) banking/ currencies competing against one another on a US only based forex exchange

I'm still working on the federal aspect of this idea due to the fact that I realize the power of the american dollar and how much it benefits our economy, I don't have that worked out yet

a reply to: r0xor

I barely survived, I actually got sponsored for fighting and that saved my ass for quiet a while

a reply to: toysforadults

Here is a condensed version of The Road to Serfdom...

The Road To Serfdom Condensed

If you are interested in it, the book can be.... found online.

And just for fun, there is a rap version of the basics...

Keynes vs Hayek part 1

It's been an ongoing battle about economics for a long time.

Hope you enjoy it...

a reply to: Lumenari

ty checking it out now

LOL at that music video hilarious

originally posted by: toysforadults
a reply to: Lumenari

ty checking it out now

LOL at that music video hilarious

It does outlay the basic points though.

there is a part 2 and 3...

a reply to: Lumenari

so far (and that's not very far)

I can agree with Hayek. freedom rely's on private ownership, it rely's heavily on the individuals ability to actively participate in the free market which we don't have

this is actually the main point I am trying to make. people do not have the ability to participate. yes in silo's they do, on small scales in limited circumstances

that's not a free market

a reply to: Lumenari

I can also agree with another Hayek point, yes I agree some form of regulation and stability needs to be applied to markets

there is a balance to be found, the key is balance but the problem is finding it

originally posted by: burdman30ott6
Well, the can was kicked down the road in 2008, so here we are. Personally, I'm a fan of deflation... but I'm not an investor, I'm but a saver. From a non-credit using consumer's perspective, deflation is a wonderful thing.

I agree. Would tickle me to death to see some deflation in prices but in doing a bit of research on this, I see that these same articles have been coming out since at least 2009. Since the last thing the Feds want is deflation they'll do all they can to avoid it. They want the populace in debt. That is what Student Loans and Obamacare were all about.

I agree with the crash of the housing market and auto industry. However, am I the only one who thinks that they are just going to do more bailouts? They are going to try to kick the can down the road once again and push a button on their computers to create trillions of more dollars. This will cause hyperinflation eventually.

Houses might cost 20,000 dollars and new cars just wont be sold. I'm worried a loaf of bread will cost a thousand dollars though. I think we will see hyperinflation once people start to realize our dollar is backed by nothing and our debt is never actually meant to be paid off.

Look at what is happening in Venezuela. The rest of the world is very possibly heading the same direction because they are all doing the same thing.

I think we are living through the destruction of the middle class. Buy physical gold and silver to preserve your wealth.