Posts Tagged Deflation
Econimic Swindles – Overheard In Every Boardroom In America
Posted by EndlessMemories in Banking Cartels & The Fed, Control Grid, Economy, Finance, News on November 8, 2014
Silver: Supply and Demand
Posted by EndlessMemories in Economy, Finance, News, Silver & Gold on July 25, 2012
via: EDRSilver
July 24, 2012
What’s So Bad About Deflation? Nothing, If You Own the Debt
Posted by EndlessMemories in Economy, Finance, News on July 20, 2012
via: OfTwoMinds
by: Charles Hugh Smith
July 20, 2012
Perhaps all the assumptions about inflation being good and deflation being bad miss the key question: cui bono (to whose benefit?)
One of the most widely accepted truisms of our time is that deflation is bad:bad for debtors, bad for the indebted government, and therefore bad for the economy.
What all this overlooks is how wonderful mild deflation is for those who owe no debt but who own the debt and the income streams that flow from debt. What the “deflation is bad” argument ignores is who controls the financial and political systems, and what set of conditions benefits them.
The entire Survival+ critique is based on one simple but revealing question: cui bono–to whose benefit?
The “deflation is bad” view naively assumes the Federal government wants inflation to lower its own debt burden. But since the machinery of governance is directed not at what’s good for the government, but at what’s good for the financial Elites that influence policy, then the only meaningful question is: what’s best for the financial Elites?
Mild inflation won’t bother the Elites much as long as their leveraged returns exceed inflation by a substantial measure, but deflation is much more lucrative: why mess around with potentially volatile inflation when deflation works better?
As knowledgeable correspondent James B. recently explained, the financial Elites’ are skimming their take regardless of inflation or deflation. (for more on this, see James B.’s commentary in Do the Parasitic Elite Pay Any Taxes? June 13, 2012.)
“Mountain Hours” Currency – Time to Reflect on Value of Paper Money
Posted by EndlessMemories in Economy, Finance, News, Silver & Gold on July 18, 2012
via: WealthCycles
July 17, 2012
A brand new currency has sprung up in Summit County, Colorado, recording the first transaction on April 3, 2012. The notes are named “Mountain Hours,” and more than a handful of communities are using local currency with the “Hours” suffix. There are River Hours in Washington and Oregon, and Ithaca Hours in New York.
In fact, almost every state has more than a handful of grassroots currencies–just check out the huge list of community currencies at Wikipedia. However, Joby Weeks and his crew have done such an excellent job promoting the benefits of alternative currency, that the list of supporting businesses in Summit County has swollen to ubiquitous proportion. Check out who will take Hours in and around Breckenridge and who can make change! List here.
The affable fellow Americans have a point: this is more than doing something grassroots within your community; it is about “networked usury-free local currencies.”
Usury refers to the parasitic interest charge on dollars. As Mike Maloney explains in his book, Guide to Investing in Gold and Silver:
- Since 1914, we’ve borrowed every dollar into existence.
- We pay interest on every dollar in existence.
- That interest is paid to a private bank, the Federal Reserve.
- The world’s largest banks, not the government, own the Federal Reserve.
- The United States can’t pay off its debt . . . it can only borrow more to pay the interest.
- Our government created income tax so we can pay this interest.
This means that the way the currency system is set up, debt must grow; it is a mathematical certainty, as each dollar ever created was loaned and is due back plus interest (usury). This creates a system where all free-capital is collected, such as a piece of citrus is squeezed for each last drop of juice. No wonder income feels like it was higher in the 1960’s–it was. Mike Maloney continues:
Natural food prices falling as big name distributors ramp up offerings
Posted by EndlessMemories in Economy, News on July 11, 2012
via: NaturalNews
Wednesday, July 11, 2012
By: Ben
[NaturalNews] It seems that more and more big name supermarkets have a natural foods section with natural food and products. Kroger in particular has pushed its Nature’s Market, now found in more than 1,300 of the 2,500 stores nationwide. With the demand to increase market share for natural foods between competitors, it could mean good news as prices fall slowly but surely.
“Used to be this was all very faddish,” said Gregg Proctor, who heads up natural foods for Kroger’s central division, which includes Indiana. “Not anymore. We’re adding new items constantly because if we don’t get it when it comes out, our competition will.”
According to the Nutrition Business Journal, natural food sales grew eight percent in 2010 compared to the less than one percent growth in the $630 billion total U.S. food market nationwide. It also grew, on average, by five percent every year from 2005 to 2009.
Kroger in Cincinnati has made a point to focus on natural foods, which makes sense considering it has seen sales double in the last four years in this area.
With those figures, it seems to be obvious there is a race to natural foods among the nation’s largest grocers. Many supermarkets are ramping up promotions and offerings, even launching their own brands of natural foods and products. The benefit to the consumer of not only selection and abundance, is price. The more these large supermarkets try to compete in this sector means falling prices.
“Make no mistake, there is a definite price differential,” said Meg Major, editor-in-chief of Progressive Grocer, a trade publication covering the industry. “But as that once small segment is growing bigger and bigger, it has not only raised awareness but affordability.”
“Our whole food culture is moving in a direction of less preservatives, less processed and just the whole ingredient count is so much more on people’s minds,” Major said.
The hurdle in this category: education. The difference between organic and natural can be a confusing one as natural foods are not regulated, unlike organic foods that are regulated by the U.S. Department of Agriculture. Organic foods are also produced with strict rules and guidelines, holding farmers and manufacturers accountable to abide by these regulations.
Not having any regulations leaves it up to the manufacturer to define the meaning of “natural foods.”
In the end, it is still up to consumers to educate themselves on labels and what they purchase at supermarkets. However, with demand in this sector increasing, it is nice to see large retailers offering healthy alternatives and striving to increase their selection.
Sources for this article include
Deflation and the Global Garage Sale
Posted by EndlessMemories in Economy, Finance, News on July 11, 2012
via: RickAckerman.com
by: Rick Ackerman
July 11, 2012
[Our good friend Victor R. is finding it increasingly difficult to sell things online and at garage sales. Could it be because everyone has turned seller in order to pay some bills? RA]
The media frequently report the chronic disappointment of the political elites that the economy isn’t rebounding. Is this perhaps because people with different incomes see the economy differently? The simple fact is that people buy less if they are jobless or working part time. These days, quite a few of them , including those The Government would count as employed, are seeking additional sources of income. It may be all the same to the Labor Department’s statisticians whether the economy is creating full-time or part-time jobs, but the latter don’t put much spending money in the hands of those who hold them. Buying power is something that those who work full-time with benefits and some sense of security possess. Those are the jobs we all want, because they amount to a career.
AEP: China heads for a deflationary shock
Posted by EndlessMemories in Economy, Finance, News on July 10, 2012
via: JohnGaltFla
by: JohnGalt
July 10, 2012
The idea that China is going to lead the world out of this crisis would be laughable until one sees the data and reads last night’s entry from Ambrose Evans-Pritchard in the U.K. Telegraph:
China heads for a deflationary shock
In this article, Mr. Pritchard states this terrifying premise for the world economy:
China is on the cusp of a deflationary vortex.
This was signalled late last year by the sharpest contraction in the (real) M1 money supply since modern records began. The hard data is now confirming the warnings.
Consumer prices have been falling for the last three months, producer prices have been falling for four months. This is not a food cost story. It is systemic.
“While an economy-wide generalized deflation is yet to be seen, the deflationary spiral looks to have started in some industrial sectors, attesting to considerable stress with the economy. Persistent deflation can be poisonous,” said Xianfang Ren from IHS Global Insight in Beijing.
Indeed it can be poisonous, and China already has the twin-afflictions of the deflation malaise: a fast aging nation, and a surfeit of factories and industrial plant.
Oil Smackdown
Posted by EndlessMemories in Finance, News on June 25, 2012
via: AltInvestorsHangOut
June 24, 2012
In this podcast:
(1) I discuss how oil has been smacked down over the past 2 months.
(2) I outline how oil has gone down over 20%, while the DOW has gone down over 5-6% in the same time frame.
Breakaway Consciousness 