Tuesday, March 20, 2012

Deflation - Why it is much scarier than inflation!

About mortgages - banks encourage now progressive rates (higher now, lower on the end). But if the difference (for the sake of argument) is +500 now and -500 in the end on the rate, with inflation that 500 is worth more now, than people would save in 30 years.

With deflation, whatever I earn now will keep it's value. I can borrow it or keep it under the pillow. It makes no difference to me, but banks could make them safe AND lend it to someone who wants to invest. Still not a bad thing to me.

"Why spend money on a house if that house is falling in value?"

Ok, if that is true, why didn't the high-tech economy sector crumbled already? Every year things are getting cheaper and cheaper. A computer bought now is worth around 2/3 of it's price in ~6-8 months, so why does anybody buy computers? Read more.....


  1. You have been doing this site for years, yet you still have no idea concerning inflation and deflation. Let me educate you on our real problem in a chart. The slope more than doubles each period while the time of each slope is cut by more than half. This is why your thought is not really dealing with reality. Here's a dose to get ya started on what the Hell is really happening over the last 30 years. Learn the rule of 72.


  2. The site owners have been changed, by the way. You can tell by the lousy articles.

  3. Anon, thanks for the heads up, as the articles selected have changed from reality to an El Presidente'/FED site. Why would you own a site called "The Coming Depression" when your articles say it's all coming up roses even if it's complete BS? Just more misinformation to confuse the sheeple.


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