davidhpc Posted November 25, 2008 Share Posted November 25, 2008 http://news.bbc.co.uk/1/hi/business/7747608.stm Could this result in a change of strategy from the CPI statisticians? namely, only putting goods that are going up in price in the basket, thereby enabling the government to deny deflation is happening? Quote Link to comment Share on other sites More sharing options...
Harry Sacks Posted November 25, 2008 Share Posted November 25, 2008 http://news.bbc.co.uk/1/hi/business/7747608.stmCould this result in a change of strategy from the CPI statisticians? namely, only putting goods that are going up in price in the basket, thereby enabling the government to deny deflation is happening? No, they'll love it. They can cut all the way to zero, debase the currency and erode all that debt. Debtors will always be rewarded in an economy that relies on them to supply the money. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted November 25, 2008 Share Posted November 25, 2008 too low for whom? Of course, bankers. silly me. fancy having to use your own money and assets to make things work. whatever next. Quote Link to comment Share on other sites More sharing options...
Chrysalis Posted November 25, 2008 Share Posted November 25, 2008 sounds like they deliberatly got inflation high for their own needs as it seems to me the general public would benefit from low inflation. Quote Link to comment Share on other sites More sharing options...
jimmylad Posted November 25, 2008 Share Posted November 25, 2008 I just read on my Oanda ( trading account ) that a 100bp ( base point) is nailed on for December Quote Link to comment Share on other sites More sharing options...
Realistbear Posted November 25, 2008 Share Posted November 25, 2008 The inevitable result of a bubble deflating. With unemployment rising rapidly wage push inflation will vanish and prices cannot go anywhere if poeple have no money to squander on discretionaries. Cash will, once again, be king as the ultimate deflation hedge as opposed to commodities (including metal ones) that are seen as inflation hedges. Quote Link to comment Share on other sites More sharing options...
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