celine handbags wrote in May

Have Americans Been Brainwashed
I especially enjoyed this piece on Bloomberg. In fact, it sounds extremely familiar to what I wrote in May as (incredibly) economists are discussing the need for inflation; in fact 6% . why? [May 20, 2009: Economists Celine US Needs More Inflation]
They argue that a looser rein on inflation would make it easier for debtstrapped consumers and governments to meet their obligations. It might also help the economy by encouraging Americans to spend now rather than later when prices go up.
I found that thinking both scary and dangerous, especially the second sentence. Drive http://www.celinehandbagse.com/ up inflation so American consumers wounded as they are, many without work and relying on government safety net will be forced to spend, which will self reinforce into an inflationary spiral? That's mainstream economic theory? Frightful.
I'm advocating 6 percent inflation for at least a couple of years, says Rogoff, 56, who now a professor at Harvard University. would ameliorate the debt bomb and help us work through the deleveraging process. Just as with the "cult of celebrity CEO as all knowing and just so rare a breed that compensation must be 100s of times the average peon"; I think Americans have been brainwashed by the deflation bogeyman. If you speak a dogma long enough it appears to becomes some sort of "fact" at least in the court of public opinion. As I opined in that May piece "light" deflation or flat prices are not bad. As long as prices fell more than wages did you could actually prosper with flat wages or slowly falling wages. I saw this mind numbing statistic in another Bloomberg piece:
Excluding the wealthiest 10 percent, the rest of the population got an average increase of $286 over that period (1973 to 2007), or about $8.41 annually, adjusted for inflation, Tax Notes said. That should tell you all you want to know about "trickle down economics" but let's not get started on a tangent. If the economists (and Fed) get their way, you will be be throwing people who have enjoyed $8 real annual gains in income (post inflation) into a world of higher inflation? To get them to spend right away rather than "do the wrong thing" and save? And you ask why we have had a debt bubble? Wages not increasing but decades of Alan Greenspan + Bernanke stoking prices because its "good for us".
This is what I celine handbags wrote in May:
Clap your hands together for our creditors we are going to repay them with increasingly worthless dollars. Whose the sucker now, creditors? I just love this article from Bloomberg inflation is now good for you. Remember, in the big picture there is nothing inherently wrong with deflation as long as goods prices fall quicker than wages. Inflation on the other hand is a regressive tax on the lower parts of society and benefits those with assets. the value of their wealth increases (at least in nominal terms) and many of the wealthiest live off assets not income. So you can guess which camp (inflation v deflation) they live in. And we all know who controls the purse strings in America. trust me, it's not those that will be hit with an egregious regressive tax.
So you must ask yourself in whose interest is inflation "good"? Certainly not savers. Certainly not consumers. The top argument against any form of deflation is people will hoard money and not spend waiting for lower celine bag prices. Mr. Lynn makes an excellent point we see that every day in electronics and we don't stop spending because of that. In fact one could argue that electronics is only 2nd to healthcare to what has shown the most growth in spending the past decade. But dogma rules it is important for central banks to print more money, to make the paper in your wallet increasingly worthless (and your real adjusted salary go nowhere for 35 years!) otherwise. well. you know. very spooky things will happen!! Don't ask what they are just be scared! Boo!!!
Here is an excerpt from the Bloomberg opinion piece spoton in my book on the concepts, while I don't agree that "economies in Europe are really recovering much at all" (recall GDP is highly flawed):
For much of the last year, central bankers, industrial leaders and politicians have been warning us about deflation. Falling prices, they tell us, will create another 1930sstyle depression. The only answer is to print money furiously.
Now it turns out the theory is a lemon. Deflation is no threat at all.

It doesn't prevent an economy from functioning, and it doesn stop it from recovering either. The evidence suggests a period of sustained deflation might be what indebted economies need to get them back on the right track.