LOL. So in one thread from you we have a cost of living crisis as price inflation is still ahead of wage inflation and now you are worried about deflation.
Yes prices getting cheaper is really terrible. Inflation is a tax on the poor but deflation makes the leveraged and indebted worse off. No wonder the powers that be love the former.
But then who believes the inflation figures anyway as they are so manipulated and exclude key areas of spend. House prices are up 10 per cent along with gas and electric bills and food prices are way up compared to a few years ago but inflation is less than 2 per cent. Comical!
no it couldn't. there is no danger from deflation. it's just not a risk at all.
but the danger of deflation, what's wrong with it, if you will. is that it stops the economy completely, and that causes it to spiral.
basically people and businesses stop buying things when they know that they could buy it cheaper in the future.
There you go with exaggeration again. I agree its unlikely, but to say there is no danger of deflation is untrue. There is some chance of it happening. No one can predict the future with 100% certainty.
There you go with exaggeration again. I agree its unlikely, but to say there is no danger of deflation is untrue. There is some chance of it happening. No one can predict the future with 100% certainty.
You would be mistaken if you think that you agree is of any concern to me.
For some reason you appear to be following me around the forum with pedantry. If you're enjoying that, and you think you added something to this thread, then I guess good for you. Seems a bit weird to me though.
There you go with exaggeration again. I agree its unlikely, but to say there is no danger of deflation is untrue. There is some chance of it happening. No one can predict the future with 100% certainty.
The UK has its own currency and sets its own base rate. We have an inflation target and set the base rates and at times try to alter money supply more directly by the selling and buying of government gilts and in more desperate circumstances the use of QE, to keep money supply at the needed level to stay around the inflation target. So unless the government decides it wants to kill the UK economy we should not have deflation. Deflation maybe a danger, but we appear to have the tools and the will to prevent it, we are willing to have base rates below inflation and willing to use to QE to write money into existance out of thin air if needed.
You would be mistaken if you think that you agree is of any concern to me.
For some reason you appear to be following me around the forum with pedantry. If you're enjoying that, and you think you added something to this thread, then I guess good for you. Seems a bit weird to me though.
You are showing signs of paranoia. We both visit the same threads because we share an interest in politics, I'm not following you.
The UK has its own currency and sets its own base rate. We have an inflation target and set the base rates and at times try to alter money supply more directly by the selling and buying of government gilts and in more desperate circumstances the use of QE, to keep money supply at the needed level to stay around the inflation target. So unless the government decides it wants to kill the UK economy we should not have deflation. Deflation maybe a danger, but we appear to have the tools and the will to prevent it, we are willing to have base rates below inflation and willing to use to QE to write money into existance out of thin air if needed.
I totally agree. We have all the tools to manage our economy and attempt to avoid deflation. If there was major deflation in all our trading partners, we might still struggle to avoid it. I think this is very unlikely, but not impossible as some others write.
I totally agree. We have all the tools to manage our economy and attempt to avoid deflation. If there was major deflation in all our trading partners, we might still struggle to avoid it. I think this is very unlikely, but not impossible as some others write.
could you paint me a scenario in which it might happen?
You would be mistaken if you think that you agree is of any concern to me.
For some reason you appear to be following me around the forum with pedantry. If you're enjoying that, and you think you added something to this thread, then I guess good for you. Seems a bit weird to me though.
That's rich coming from someone who regularly stalks and insults people for the sake of it.
remember the comment that set of your pedantry was 'no it couldn't. there is no danger from deflation. it's just not a risk at all.'
are you saying there is a risk from deflation or not?
I have consistently said that there is a small risk of deflation. You seem to have a very limited imagination that can't image any set of circumstances where deflation could occur. I simply have the ability to consider a wider range of possibilities than you.
I remember your severely limited imagination also ruled out all possibility of Russia invading any part of Ukraine.
I have consistently said that there is a small risk of deflation. You seem to have a very limited imagination that can't image any set of circumstances where deflation could occur. I simply have the ability to consider a wider range of possibilities than you.
I remember your severely limited imagination also ruled out all possibility of Russia invading any part of Ukraine.
right so you are saying there is a small risk of deflation. yet you can't explain how it would happen.
your posts are a string of personal insults. i find it most odd. i haven't insulted you at all.
if you can consider a wider range of possibilities than me why don't you tell me of one of them. so i can tell you why you are wrong using actual economics.
i was wrong about Russia and Ukraine. but that is some impressive stalking you're doing. are you sat there reading through 40,000 posts of mine?
right so you are saying there is a small risk of deflation. yet you can't explain how it would happen.
your posts are a string of personal insults. i find it most odd. i haven't insulted you at all.
if you can consider a wider range of possibilities than me why don't you tell me of one of them. so i can tell you why you are wrong using actual economics.
i was wrong about Russia and Ukraine. but that is some impressive stalking you're doing. are you sat there reading through 40,000 posts of mine?
Yes prices getting cheaper is really terrible. Inflation is a tax on the poor but deflation makes the leveraged and indebted worse off. No wonder the powers that be love the former.
But then who believes the inflation figures anyway as they are so manipulated and exclude key areas of spend. House prices are up 10 per cent along with gas and electric bills and food prices are way up compared to a few years ago but inflation is less than 2 per cent. Comical!
Why don't you give us the price of a few things now and what you think the "real" rate of inflation should be and we can work out what those things used to cost a few years ago.
If there was major deflation in all our trading partners, we might still struggle to avoid it. I think this is very unlikely, but not impossible as some others write.
Why don't you give us the price of a few things now and what you think the "real" rate of inflation should be and we can work out what those things used to cost a few years ago.
Rent is included in inflation figures.
I do wonder if there may actually be an inbuilt over estimation. i wonder if the ONS is still buying their 'Pack of individual cakes' in sainsbury's and the rest of us have moved to the 99p shop.
Comments
no it couldn't. there is no danger from deflation. it's just not a risk at all.
but the danger of deflation, what's wrong with it, if you will. is that it stops the economy completely, and that causes it to spiral.
basically people and businesses stop buying things when they know that they could buy it cheaper in the future.
This means falling revenues and lower job security.
I prescribe a 100Y rise in the NMW.
http://i.telegraph.co.uk/multimedia/archive/02886/unnamed_2886367c.jpg
http://www.telegraph.co.uk/finance/economics/10774013/Eight-EU-states-in-deflation-as-calls-grow-for-QE-in-Sweden.html
But then who believes the inflation figures anyway as they are so manipulated and exclude key areas of spend. House prices are up 10 per cent along with gas and electric bills and food prices are way up compared to a few years ago but inflation is less than 2 per cent. Comical!
There you go with exaggeration again. I agree its unlikely, but to say there is no danger of deflation is untrue. There is some chance of it happening. No one can predict the future with 100% certainty.
You would be mistaken if you think that you agree is of any concern to me.
For some reason you appear to be following me around the forum with pedantry. If you're enjoying that, and you think you added something to this thread, then I guess good for you. Seems a bit weird to me though.
You are showing signs of paranoia. We both visit the same threads because we share an interest in politics, I'm not following you.
I totally agree. We have all the tools to manage our economy and attempt to avoid deflation. If there was major deflation in all our trading partners, we might still struggle to avoid it. I think this is very unlikely, but not impossible as some others write.
could you paint me a scenario in which it might happen?
Why not read post #7?
It is not impossible that things will get worse in the euro zone, which could affect us.
Again, let me repeat, I don't think it is likely, but writing that it can't happen is incorrect as there are circumstances where it could happen.
I read post number 7.
remember the comment that set of your pedantry was 'no it couldn't. there is no danger from deflation. it's just not a risk at all.'
are you saying there is a risk from deflation or not?
That's rich coming from someone who regularly stalks and insults people for the sake of it.
I have consistently said that there is a small risk of deflation. You seem to have a very limited imagination that can't image any set of circumstances where deflation could occur. I simply have the ability to consider a wider range of possibilities than you.
I remember your severely limited imagination also ruled out all possibility of Russia invading any part of Ukraine.
right so you are saying there is a small risk of deflation. yet you can't explain how it would happen.
your posts are a string of personal insults. i find it most odd. i haven't insulted you at all.
if you can consider a wider range of possibilities than me why don't you tell me of one of them. so i can tell you why you are wrong using actual economics.
i was wrong about Russia and Ukraine. but that is some impressive stalking you're doing. are you sat there reading through 40,000 posts of mine?
Perhaps you ought to focus on the thread topic?
I have, as far as i am concerned i have answered the question is it a risk and why is it bad.
but then i have to deal with my pedantic stalker.
Why don't you give us the price of a few things now and what you think the "real" rate of inflation should be and we can work out what those things used to cost a few years ago.
Rent is included in inflation figures.
would our currency not move to negate the deflationary impact of these cheap imports?
I do wonder if there may actually be an inbuilt over estimation. i wonder if the ONS is still buying their 'Pack of individual cakes' in sainsbury's and the rest of us have moved to the 99p shop.
It is not very likely but possible.