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gruffydd

Irish Meltdown Continues

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http://www.iii.co.uk/news/?type=afxnews&articleid=7919004&subject=economic&action=article

DUBLIN, May 31 (Reuters) - The amount of outstanding loans to Ireland's private sector fell 9.3 percent in April from a year ago, the same rate of contraction as in March, while the mortgage stock shrank faster, the central bank said on Monday.

They have shrinking M3 money supply which implies a deflation. The USA have a shrinking money supply M3, now going down at the rate last seen in 1931. The debts were so large that to cut the supply of public money in suffcient quantity to make any diffence to the debts causes deflation. To not pay them off ends in Greek style yoghurt all over your growing national debt.

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Crisis has been averted and we are not at the start of a depression. :lol:

I suppose the good news relative to the 30s is that we can blame this depression on Asia

Edited by fallingbuzzard

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They have shrinking M3 money supply which implies a deflation. The USA have a shrinking money supply M3, now going down at the rate last seen in 1931. The debts were so large that to cut the supply of public money in suffcient quantity to make any diffence to the debts causes deflation. To not pay them off ends in Greek style yoghurt all over your growing national debt.

Yes ok, but can someone explain how, if we are suffering deflation, that prices are rising?

Deflation is a myth, never proven (in my eyes, as an amateur). Perhaps, money is a one way street, there can only be up for it to work?

But in an environment where inflation is rocketing, it must help the powers that be create a new mythological monster called deflation.

It matters not what the overall amount of money in circulation is, it matters what we, as little people are paid, and what it can buy. Deflation means we have less money, so we cant buy stuff. Why would a supplier sell at a rate less than he produced it at? The argument for defaltion is that people will wait to but as it will become cheaper. Unfortunately suppliers will just give up supplying the uk if we cant pay enough (supply and demand, its more profitable to sell elsewhere).

Deflation in the value of houses does not affect anyone other than the owner, percieved value is the problem i feel.

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Deflation is a myth, never proven (in my eyes, as an amateur). Perhaps, money is a one way street, there can only be up for it to work?

I am sure many Irish workers who have seen their pay cut wish deflation was a myth too.

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Deflation in wages, maybe, but have prices delfated in parallel?

That suggests, if wages fall and prices dont, the difference is actually the ability to buy less than you used to given the work you do.

Inflation is the destruction of purchasing ability through price increases, and as such ireland in inflating.

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Guest KingCharles1st

So isn't that stagflation?

Prices going up, growth (and wages) going down.

I suppose, if one thinks about it, if for the average person easy credit is removed, then wages and so on need to RISE to try and bridge the gap.

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Deflation in wages, maybe, but have prices delfated in parallel?

That suggests, if wages fall and prices dont, the difference is actually the ability to buy less than you used to given the work you do.

Inflation is the destruction of purchasing ability through price increases, and as such ireland in inflating.

Ireland looks to still be in deflation to me

http://www.independent.ie/national-news/prices-still-falling-but-mortgages-and-fuel-rise-sharply-2179673.html

The money supply is declining as well which does not suggest this is going to change any time soon.

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So isn't that stagflation?

Prices going up, growth (and wages) going down.

Not convinced there is any such beast.

The most famous stagflation was the late 1970s but from what I remember it was really just inflation in drag. It was only growth that went negative. Wages continued to increase but just struggled to keep up with wider price inflation

Edited by realcrookswearsuits

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Another country expected to struggle through deflation so that Germany can hit strict inflation targets internally.

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Bring back the Punt I say; & 20 acre farms on the west coast for 20,000 of the said Punts.

That was 15 years ago, & slowly, ultra painfully, this is where sustainability (such as it ever was in IRL) lies........ minus those EU grants for farming where it isn't viable. Been there - seen that - almost did that.

So I'm not sure Ireland is viable at all post EU austerity.

Grim times ahead.

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"We have been experiencing stagflation in this (UK) country for years. It is just that no one has noticed it. Real wages have been declining as prices have been rising and the gap has been filled by bankers willing to extend unlimited credit. It was all working quite well until the banks extended the credit too far and the inevitable consequence was the crash we see all around us today."

I think this is right. Staggers has been with us for years.

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  • 146 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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