JP1746 Posted March 30, 2005 Share Posted March 30, 2005 Exactly I posed a question a few weeks back re 2 different types of crash. I was amazed at the number of people who wanted (tongue in cheek or not) economic armaggedon. Selfish lunatics.<{POST_SNAPBACK}> "economic armaggedon" ... Oh, you mean the unrealistic hyperinflation real estate has experienced recently ? Quote Link to comment Share on other sites More sharing options...
MarkG Posted March 30, 2005 Share Posted March 30, 2005 Oh, you mean the unrealistic hyperinflation real estate has experienced recently ? No, that's 'a healthy economy', silly. Quote Link to comment Share on other sites More sharing options...
jjay Posted March 30, 2005 Share Posted March 30, 2005 No, it works out better. Really? That must be why governments worldwide are scrambling over each other to send their economies into deflation. I'd love to see you actually provide a sound basis to back up this amusing statement. Salaries are increasingly lagging behind real inflation, so most people are losing money over time... only a small fraction can actually get rises above inflation. The quoted rate of inflation is around 2% - right? So - what's the "real" rate of inflation you talk of? Are you telling me people aren't even getting 2% pay rises. Again, back this up otherwise your statements sound ludicrous. With deflation, everyone wins, not just the priviledged few. Isn't that communism? Capitalism is about winners and losers. Pie in the sky theories about economic equilibrium are all well and good, but it doesn't pay the bills. No, you're gaining 1%, because 2% of that is stolen in tax. Nope - basic rate of tax is 20%, so therefore 1% of the 5% I mentioned. 2% is for higher rate tax payers. 2% inflation. 5% interest. 4% net. You're still 2% ahead. Current British interest rates and tax laws mean savers are making significantly less than real rates of price inflation on their money. Again - prove this statement with actual figures from today's economy. No-one stops buying _essential_ items because they'll be cheaper tomorrow. They need them today. The only purchases affected by deflation are luxuries. How much of your monthly spend is essential purchases? Food, housing, what else? If you go to the pub, that's a "luxury" by your definition. If people only purchased what they "needed", the economy would take a massive hit. Maybe even a 50% hit? Your theories are just that - theories. The real world doesn't work at all as you would like try to pretend it does. Quote Link to comment Share on other sites More sharing options...
MarkG Posted March 30, 2005 Share Posted March 30, 2005 That must be why governments worldwide are scrambling over each other to send their economies into deflation Of course not: most governments don't give a crap about anything other than keeping their jobs in the short term... which means buying off the voters with cheap credit. I'd love to see you actually provide a sound basis to back up this amusing statement. How do people become _better_ off when the prices of essential items increase? So - what's the "real" rate of inflation you talk of? The real rate at which the real cost of living increases, rather than some bogus garbage that the government spews out to justify its low interest rate policies. Are you really claiming that your cost of living is only up by 2% in the last year? Are you telling me people aren't even getting 2% pay rises. I'm telling you, as I quite clearly said, that wage inflation is lagging behind real price inflation. Which is a heck of a lot more than 2%. Capitalism is about winners and losers. Ah, I get it. You think you're a 'capitalist winner' if you borrow large sums of money on the assumption that inflation will screw the lenders (i.e. the _real_ capitalists) and make you rich. No wonder you hate deflation. Nope - basic rate of tax is 20%, so therefore 1% of the 5% I mentioned. 2% is for higher rate tax payers. And how many people with significant savings only pay 20% income tax? If people only purchased what they "needed", the economy would take a massive hit. And? If the economy can only function because people borrow up to their limit to buy crap they don't need, what good is it? The real world doesn't work at all as you would like try to pretend it does. LOL. The 'real world' worked that way for centuries before the advent of fiat currencies on a global scale. Quote Link to comment Share on other sites More sharing options...
Wuluf Posted March 30, 2005 Share Posted March 30, 2005 Hi Mark G....you still have not told us which country you are emmigrating to ? ( once they have decided to let you in )))))) ....WITH THE AMAZING LOW PRICES ........TOP SECRET ?????? <{POST_SNAPBACK}> UK-monkey.. Lots of people on this board no longer live in the UK.. You on the other hand have probebly never lived anywhere else.. Quote Link to comment Share on other sites More sharing options...
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