inflation nowhere to be seen...10% price drop in Germany

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strabes's picture
strabes
Status: Diamond Member (Offline)
Joined: Feb 7 2009
Posts: 1032
inflation nowhere to be seen...10% price drop in Germany

For those who still think hyperinflation is imminent...

http://www.forextv.com/Forex/News/ShowStory.jsp?seq=1035229

I don't want to re-explain my view (Prechter's view) of the theoretical basis for deflation, I'll simply ask:  how long will people buy the inflationists' arguments in the face of so much evidence to the contrary (PPI drop, Ukraine's 20% GDP drop, massive global unemployment and more coming...)???

Deflation must run its course before inflation is possible.

 

Farmer Brown's picture
Farmer Brown
Status: Martenson Brigade Member (Offline)
Joined: Nov 23 2008
Posts: 1503
Re: inflation nowhere to be seen...10% price drop in Germany

Hi Strabes,

Totally agree with you.  Signs of deflation are everywhere and signs of inflation are few and far between.  I would be very careful about Prechter though.  I think he may be so far invested in his own theory that he may not catch on when inflation makes its inevitable entrance.  I actually subscribe to his newsletter, but I read it with one eye on the newsletter and the other on everything else going on around us.  It's a good "test", but like all theories, it should be tested all the time.

Davos's picture
Davos
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Joined: Sep 17 2008
Posts: 3620
Re: inflation nowhere to be seen...10% price drop in Germany

With all due respect I'd beg to differ.

 

strabes's picture
strabes
Status: Diamond Member (Offline)
Joined: Feb 7 2009
Posts: 1032
Re: inflation nowhere to be seen...10% price drop in Germany

hi guys.  I agree Farmer.

oops.  I didn't realize investorzzo posted basically the same thing in another post.  thanks for pointing that out Davos.

admin might as well delete this one.

Segestan's picture
Segestan
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Joined: Aug 18 2009
Posts: 2
Re: inflation nowhere to be seen...10% price drop in Germany
strabes wrote:

For those who still think hyperinflation is imminent...

http://www.forextv.com/Forex/News/ShowStory.jsp?seq=1035229

I don't want to re-explain my view (Prechter's view) of the theoretical basis for deflation, I'll simply ask:  how long will people buy the inflationists' arguments in the face of so much evidence to the contrary (PPI drop, Ukraine's 20% GDP drop, massive global unemployment and more coming...)???

Deflation must run its course before inflation is possible.

 

 

Inflation is not always the result of consumption. Once the system breaks, that is that provides production, ( consumption) inflation will be the result. No production means money chasing few goods.

britinbe's picture
britinbe
Status: Gold Member (Offline)
Joined: Dec 28 2008
Posts: 381
Re: inflation nowhere to be seen...10% price drop in Germany

Without doubt deflation is here.................... for now at least.  I've been in the UK and Ireland for the last few weeks and with all the sales and stock clearances there are some seemingly good bargins to be had if you want them. 

We rented a cottage in the west of Ireland for €500 for 10 days and there were plenty of other available for rent that wouldn't normally be available at this time of year.  There appears to be numerous abondoned or moth-balled building projects as well, however, there were sigs that property is starting to sell because of the apparent bargains to be had, but equally there was news of Liam Carroll's property development empire being taken down by the banks wanting their money back (with specualtion of others to follow), mixed in with concerns over issues with the Irish having second properties in the sun reposessed and concerns over gaps in health care coverage (its private in ireland).

In the UK, there are lots of sales and stock clearances, but having travelled around and visisted folks in different parts of the UK, one can see many many prime retail locations that are empty in the larger shopping centres (Trafford Centre, Manchester, the Bull Ring, Birmingham, Cardiff etc).  However, the population really does believe that there is money around and is trying to spend.

Inflation will surely follow once all the moeny printed gathers some momentum and flows out into the wider economy, its only a matter of time....... and lets face it, we all know that inflation has been under reported for many many years by almost every government or CB around the world.   The PTB need inflation and the one thing they cannot aaffoard is asset defaltion in the long run, I just have no confidence in their ability to control it (assuming that is, that they want to)

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