Oh dear my fellow bears, I truly am thinking we're screwed Brothers :); The baskets are even getting their plan in place to do "QE for The People" 'next time 'round'
Tweet Topic Started: 18 Sep 2015, 08:47 AM (7,771 Views)
You need to inflate houses to offset the deflationary effect of productivity improvements. The rich rely on inflation to become richer. As soon as the rich discover a reliable way to become richer from deflation, that will be the end of this type of inflation.
That depends on how you adapt the the situation. Perfect example of this is Fast Retailing.
Many lambasted Uniqlo and all it stood for at the time as a symbol, or even a cause, of the vicious deflation that was to run the once unstoppable economy ragged over the next two decades.
But with Japan’s politicians seemingly unable to staunch the wound and re-float Asia’s second largest economy, Uniqlo has pounced, turning customers’ ever decreasing spending power to its advantage and becoming one of the country’s most successful companies.
Fucking idiots. You think a nation of day trading (lost all money in the corner trading kisok by the way), $50 a day (got laid off because of Western aggregate demand slow down by the way) factory workers who can't afford pork, let alone a house that is the highest price to income ratio in the world at 27 x, whose pensions have been consfiscated to prop up a fake stock market where 90% of companies have been in permanent stop sell in the past year, not to mention are in the top 10 private debt to gdp, will really be the salvation of the world economy? Oh yeah, that $50 average is inflated by 4 million millionaires from their corrupt bureaucracy you know? Check the median and lower pyramid. It's still $2 a day farm hands, whose ranks are increasing since the implosion of their economy in the last year.
You can see who the Chinese background posters are in this forum but the vitriol they defend this polluted wasteland of a continent.
That depends on how you adapt the the situation. Perfect example of this is Fast Retailing.
Many lambasted Uniqlo and all it stood for at the time as a symbol, or even a cause, of the vicious deflation that was to run the once unstoppable economy ragged over the next two decades.
But with Japan’s politicians seemingly unable to staunch the wound and re-float Asia’s second largest economy, Uniqlo has pounced, turning customers’ ever decreasing spending power to its advantage and becoming one of the country’s most successful companies.
Exactly. That's an example of some rich people adapting to deflation. As Japanese industry became more productive faster than the monetarists could expand the money supply, Japan was the first to be caught in a permanent deflationary environment.
So it is natural that Japanese companies are the first to adapt to this new environment. Not entirely of course, the "old rich" puppet Abe is still vainly trying to reflate the Japanese economy, but the war is already lost. It won't be long before Japan adapts entirely to the new reality, soon to be followed by Korea, then probably Taiwan and potentially even China.
It will take the Western world much longer to adapt. I would guess a generation longer. The current generation of institutional leaders in the West still don't even know what has happened, much less understand it.
“Talk sense to a fool and he calls you foolish.” - Euripides
That depends on how you adapt the the situation. Perfect example of this is Fast Retailing.
Many lambasted Uniqlo and all it stood for at the time as a symbol, or even a cause, of the vicious deflation that was to run the once unstoppable economy ragged over the next two decades.
But with Japan’s politicians seemingly unable to staunch the wound and re-float Asia’s second largest economy, Uniqlo has pounced, turning customers’ ever decreasing spending power to its advantage and becoming one of the country’s most successful companies.
Well Japanese retailers would have to adapt, but here we still have inflation and GDP growth albeit modest. In fact most of the Western world is in this position.
Some may be banking on negative growth in the future, but in reality the RBA will do whatever it takes to promote positive growth within their target range. That is their mandata, that and full employment. So from my perspective that's what I base my strategy on. For others it may be different, but either way there is risk. For me the risk is that the RBA may lose control, for those basing their plans on negative growth, the risk is that the RBA will maintain control.
So far the points on the board belong to the RBA.
Any expressed market opinion is my own and is not to be taken as financial advice
Well Japanese retailers would have to adapt, but here we still have inflation and GDP growth albeit modest. In fact most of the Western world is in this position.
Some may be banking on negative growth in the future, but in reality the RBA will do whatever it takes to promote positive growth within their target range. That is their mandata, that and full employment. So from my perspective that's what I base my strategy on. For others it may be different, but either way there is risk. For me the risk is that the RBA may lose control, for those basing their plans on negative growth, the risk is that the RBA will maintain control.
So far the points on the board belong to the RBA.
Good luck with both.The rba has already lost control, rates cuts in February and May to the lowest levels, yet house prices and rents are falling and unemployment has been continually rising since 2008.
Oh yeah, that $50 average is inflated by 4 million millionaires from their corrupt bureaucracy you know? Check the median and lower pyramid. It's still $2 a day farm hands, whose ranks are increasing since the implosion of their economy in the last year.
You actually have no idea whatsoever what you are talking about.
My only hope for my three boys is that they turn out nothing at all like Chris.
Good luck with both.The rba has already lost control, rates cuts in February and May to the lowest levels, yet house prices and rents are falling and unemployment has been continually rising since 2008.
The rba's function is to give cover for the bank's manipulation of interest rates to maximize profit over the debt supercycle. Why should a bank, or any corporation for that matter, be expected to surrender its most efficient means of profit. The bigger the corporation to more it is allowed to get away with because the more political power it can buy. Banks are at the top of the food chain in this respect.
It is nieve to think the rba is an altruistic board of men meeting with the best interests of the Australian population at heart. They serve the banks who pay them lavishly, and since many are capitans of industry themselves, they thus serve their own interests as well.
The same principle operates at the base of the food chain as well. A mortgage broker will claim to have your best interest at heart and be seeking the best loan to suit your needs, but in reality they will steer you into a loan that pays them the greatest commission or kickback.
Quote:
A broker's fee or commission for arranging a loan is often paid by the credit provider whose products they sell. Different credit providers pay different commission levels. This can potentially influence what loans the broker recommends to you. Sometimes a broker will charge you a fee directly (instead of, or in addition to, the credit provider's commission). Find out the fee structure for the broker's service, and compare fees charged by different brokers to make sure you get a good deal. [url]Https://www.moneysmart.gov.au/borrowing-and-credit/home-loans/using-a-broker[/url]
"Panics do not destroy capital; they merely reveal the extent to which it has been previously destroyed by its betrayal into hopelessly unproductive works." John Stuart Mill
Well Japanese retailers would have to adapt, but here we still have inflation and GDP growth albeit modest. In fact most of the Western world is in this position.
Some may be banking on negative growth in the future, but in reality the RBA will do whatever it takes to promote positive growth within their target range. That is their mandata, that and full employment. So from my perspective that's what I base my strategy on. For others it may be different, but either way there is risk. For me the risk is that the RBA may lose control, for those basing their plans on negative growth, the risk is that the RBA will maintain control.
So far the points on the board belong to the RBA.
First of all, Fast Retailing is a manufacturer and a retailer. It's a global phenomenon, which we have no parallel for.
Anyway, OK, I guess by the "Western world", you actually mean the "Anglosphere," which dominates what you believe as monetarism--the mechanism by which people who speak English as a native language concocted so we can ensure that prices forever go up. Well it's working damn well, but at the end of the day, I can't see too many Aussies, Yanks, Brits, and Kiwis complaining if they only have to spend $1 on an egg slice that is better than the egg slice on offer in their suburban store for $5.
But perhaps you have a point. Perhaps spending $5 on an egg slice is kind of economic patriotism and is the sacrifice one has to pay in the world of ever increasing asset prices.
"Panics do not destroy capital; they merely reveal the extent to which it has been previously destroyed by its betrayal into hopelessly unproductive works." John Stuart Mill
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