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Realistbear

Fed: Inflation At Lowest Ebb Since 1960

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No, its just a well-known aspect of the human condition to which I observe, with a glorious sense of warm irony, you seem especially vulnerable.

Ao example of, if you would be so kind.

Rubbish of course, but good post. Its the way you state nonsense with such confidence. Run for office or write a book, don't waste it on us.

Go and ask your fellow man - those wonderful fellows in the street. They decide what money is.

Just for the sake of sanity, could you both offer your definition of deflation? I *think* RB defines inflation as price rises judging by the OP, although in literally the same thread then referred to that Rick Ackerman article as being about deflation, which appears to be referring to money supply.... so RB is undecided. Injin? Don't feel you have to stick to just one definition, feel free to ****** about with it a little, and remember to change it when we least expect it.

Money supply.

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Try it in a shop.

Fiat means forced, market means freely traded.

Which has nothing to do with inflation or deflation.

That's just trade for ya.

Quite a few "shops" take goods in exchange or part-exchange. Cars come to mind.

Fiat simply means ascribed to. You cannot force the price of gold to be $XXX. Market movements determine the price much as the market determines everything.

The old saying, you can't beat the market, is true as it always wins---in the end. Just look how Gordon's no more boom and bust was taken down by the market. The cycle always wins.

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Quite a few "shops" take goods in exchange or part-exchange. Cars come to mind.

And they call it part exchange, not money.

Fiat simply means ascribed to. You cannot force the price of gold to be $XXX. Market movements determine the price much as the market determines everything.

No, fiat means forced, by decree.

Market movements are not decrees, they are records of free trade. They are in no way binding upon anyone.

The old saying, you can't beat the market, is true as it always wins---in the end. Just look how Gordon's no more boom and bust was taken down by the market. The cycle always wins.

And facts remain even if you don't like them. Facts just are.

For example, inflation is an increase in the money supply.

Another one -

There haven't been any deflationary recessions or depressions ever when the option to print paper money has been available. They have all been inflationary.

And another one -

There is no deflation currently.

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So just opinion.

Nope.

I say inflation is an increase in the general price level.

That's nice.

There - the definition has changed.

Nope.

Still the same - inflation is an increase in the money supply.

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How long until we see deflation in UK hosue prices though - it is going to need a pretty big puncture!?

Please, no long nominal or real debate but how long before the sticker prices drop?

That is the question perplexing us all I think.

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Evidence?

"Inflation is always and everywhere a monetary phenomenon." Milton Friedman http://en.wikipedia.org/wiki/Monetarism

Myself, I am firmly in the "not a f*cking clue" camp, meaning I hold a healthy mixture of cash and inflation hedges.

If I come through what is approaching with a guaranteed half of my savings intact, that seems better than a 50:50 gamble on all or none.

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Anyone in paper gold deserves what is coming to them.

By paper gold do you mean ETFs, not the likes of Bullionvault and Goldmoney?

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Guest The Relaxation Suite

http://www.bloomberg.com/apps/news?pid=20601087&sid=aQeD1PU0asH4&pos=6

Fed Rate Increase Pushed to 2011 as Inflation Ebbs (Update1)
By Shobhana "Showboat" Chandra and Alex "Al" Tanzi
June 9 (Bloomberg) -- Record-low inflation and prolonged unemployment mean the Federal Reserve will hold off raising interest rates until 2011, according to economists surveyed by Bloomberg News.
The central banks preferred price gauge will rise 1.1 percent this year, the
smallest gain in data going back to 1960,
and the jobless rate will average more than 9 percent through next year, the median estimate of 65 economists surveyed from June 2 to June 8 showed.

Lowest inflation in half a century might mean that there is a trend-line which points to (shhhh), deflation.

Could this mark the turning point and the beginning of a new cycle? Or, is the economy as Gordon suggested, all one way (boom only, no bust)?

US inflation rate (consumer prices) 2009 = -0.7%. It doesn't cometh, it already is hereth.

Edited by Tecumseh

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US inflation rate (consumer prices) 2009 = -0.7%. It doesn't cometh, it already is hereth.

Jan - April 2010 average in US is +2.33% - not "hereth" any more!!!

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How long until we see deflation in UK hosue prices though - it is going to need a pretty big puncture!?

Please, no long nominal or real debate but how long before the sticker prices drop?

That is the question perplexing us all I think.

It will pop when the subsidies come off (low IR, artificial employment levels) and when sentiment turns. Most still believe prices are rising due to EA statistics.

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http://www.ft.com/cms/s/0/722bea4a-643d-11df-8618-00144feab49a,dwp_uuid=b8efc2ae-d98d-11dc-bd4d-0000779fd2ac.html

Tame price rise data raise US deflation fears
By James "Jim" Politi in Washington
Published: May 20 2010 19:34 | Last updated: May 20 2010 19:34
The shifting nature of risks in the US economy from inflation to deflation was neatly captured by Michael Feroli of JPMorgan in the headline to a research note this week.
“Goodbye Weimar, hello Japan,” he wrote after data showed that core consumer prices – which exclude volatile food and energy costs –
rose 0.9 per cent in the year to April, the slowest pace in 44 years.

Since the FT wrote the above the rate hit a 60 year low-see OP.

The trend points to deflation. Advance warning of this trend seems to be apparent and it may be time to leave the big African river and start recognising the reality of the duck.

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.....

Go and ask your fellow man - those wonderful fellows in the street. They decide what money is.

......

Yup...

credit-card.jpg

Works anywhere in the world.

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Yup...

credit-card.jpg

Works anywhere in the world.

...because people think it's cash.

The test is simple - go to your local store and offer to buy things by emailing them some numbers.

When they say no, ask them why not.

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Yes.

Inflation is an increase in prices.

Nope.

All over definitions are guff.

That's an all over definition.

Please feel free to refute with a factual argument.

No need to do that.

You disprove your case just by the act of posting it.

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Myself, I am firmly in the "not a f*cking clue" camp, meaning I hold a healthy mixture of cash and inflation hedges.

:) I think, to be honest that is the best opinion to have!

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Nope.

That's an all over definition.

No need to do that.

You disprove your case just by the act of posting it.

I conducted a street pool in Liverpool. Everybody said inflation was rising prices.

Therefore that is what it is.

Irrefutable.

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  • 259 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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