tag:blogger.com,1999:blog-7268468693840523552.post8982373978425773440..comments2023-06-08T04:32:10.989-07:00Comments on Upham Manor: The World of Financial Make-BelieveGlenohttp://www.blogger.com/profile/00136566571723615119noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-7268468693840523552.post-329990096395839362010-08-08T11:36:39.688-07:002010-08-08T11:36:39.688-07:00So far we have only looked at part of the equation...So far we have only looked at part of the equation, the supply of money. But what happens if the quantity of goods available increases? What if instead of having ten items we build ten more? We now have twenty items and only $10. 00 so once again each item is worth 50¢. <br /><br />This form of deflation is the good type. Everyone assumes that deflation is bad because the last major deflation that we had was during the "Great Depression" so deflation and Depression are synonymous in many peoples minds. In actuality if prices go down because the goods can be manufactured more cheaply this ends up increasing everyone's wealth.<br /><br />This is exactly what happened in the late 1990s , with cheap productivity available from former Communist countries the quantity of goods is increased while the money supply increased at a slower rate.<br />http://inflationdata.com/inflation/Inflation_Articles/Deflation.asp<br /><br />I had to do some research because honestly, I don't have a clue about economics stuff at this level. Actually, I dont' think many people do. I think they think they do. <br /><br />Anyway. Some of the drawbacks of deflations as I read it is unemployment. Deflation brings about falling wages, or unemployment, which means fewer jobs, less purchasing power... and on and on. People seeing prices drop and waiting to buy at a lower price, so again, catch 22. <br />I'm not sure why people think we are heading for deflation. The only thing that is going down in price seems to be Homes. But the Fed is trying to prevent that because so much money was artificially put in to home purchases, that he banks don't want to lose that money. The fake economy continues to be propped up. And because of it, I am only able to roll a CD over for 1.5% interest. <br />As for the people who want to raise gas prices. Shoot me now. The ONLY way to get people to cut down on something is to put a higher price on it. If it's worth something to them, they will consider it. If not, just chuck it away. It is the American way. <br />CC, still not able to comment without error.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7268468693840523552.post-32518492233034834812010-08-06T05:43:36.541-07:002010-08-06T05:43:36.541-07:00John, I would agree that the shock of the price le...John, I would agree that the shock of the price leaps affected people "at first", but even though these increases seem to now have been quietly absorbed into people's weekly bills and expenses, it is still a FACT that the money they spend on gas they are now no longer able to spend on other things.<br /><br />I find it sad that the American public is so quickly desensitized by certain things. Sure, its a testimony to our indomitability, but the negative side of that is that we find ourselves willing to be on the receiving end of pain that we can and should refuse.Glenohttps://www.blogger.com/profile/00136566571723615119noreply@blogger.comtag:blogger.com,1999:blog-7268468693840523552.post-71968139437767743032010-08-05T15:35:03.606-07:002010-08-05T15:35:03.606-07:00The recession and the fuel costs had a huge impact...The recession and the fuel costs had a huge impact at first, but as I drive and see all the cars on the roads it is less impacting. The only way to drive down rising costs is ironically... to drive lessUnknownhttps://www.blogger.com/profile/12547582659867110731noreply@blogger.comtag:blogger.com,1999:blog-7268468693840523552.post-40514550972921018692010-08-05T09:47:52.245-07:002010-08-05T09:47:52.245-07:00Well said, my friend. I could go on for hours on t...Well said, my friend. I could go on for hours on this topic.<br />Companies should be able to charge whatever they want (high or low) for their goods and services. We get to decide if we are going to buy them or not. If not, then the company drops their prices or goes under. No bailouts. Thank you for playing.<br />I hear people on NPR all the time talking about pricing carbon based fuels so that they are no longer an viable source. INSANITY!! Kill those people with a gun. Give people an affordable option and they will use it. Nobody cares what powers their car. They care that their car can get from point A to point B at a reasonable pace, and that the power source is readily available. I'd use an electric car if it had a range comparable to a gas powered car, charging it was fast and easy, and the price was not more than other options.<br />I hate Bank of America with the white hot heat of a thousand suns, but they can charge whatever they want. Our job is to make them hurt and refuse to use their products. They are doing what they are doing because they can. They also think that they are invincible, just like the other financial institutions that we now talk about only in the past tense. Let's do it.<br />If we eliminated our trade deficit, then a large portion of the world would be reduced to third-world status. I'm not sure that's our problem. The US should not feel obligated to run itself into the ground in order to prop up other countries. Similarly, I should not be forced to spend and spend in order to keep the US economy able to give money away at will. I need my money to maintain my family. If I cannot afford to spend, then tough luck for the sellers.Unknownhttps://www.blogger.com/profile/03961752499758336371noreply@blogger.com