So what is "Deflation" ?

[buggerlugs]

http://www.news.com.au/finance/econo...-1227063772773
Can't say I've heard of "Deflation" before, other than a tyre going down..........

[nuthin' fancy]

Inflation is prices rising, deflation is prices falling.

[ILLaViTaR]

For some people. Their assets can depreciate/deflate instead of only rise/appreciate in value. This is refereed to as deflation in the context of the general market.

[chevypower]

I am all for deflation. It will bring the value of the currency up, and everything in relation to it down. In simplified terms, everything becomes cheaper, and currency actually becomes a good investment, rather than investing in commodities like land, oil, gold etc. It's hard to do because in order to do it, there has to be less supply of currency and people would complain there isn't enough to be distributed to everyone. Most people look at $5 and say it's worth $5. They don't look at in terms of $5 could be worth 10L of milk or 5L of milk. They think in terms of "I just want more money." So they print more money, it becomes worthless, and you need more of it to buy things (inflation). Inflation encourages property investments and gives investors a sense of security. I'm more for flooding the market with resources, limiting supply of currency, and making everything cheap. Even though wages would decrease.

[GASWAGON]

I just posted that same news article up om another forum......Its looking like Europe is in for some hard times maybe even a GFC round 2???

[usernametaken]

GFC 1 was simply the transfer of debt from private hands to public hands...

GFC 2 will be a whole lot worse than GFC 1

Deflation was the precursor to The Great Depression - I don't think that was enjoyable by those that lived it.

Look at Japan deflation and now stagnation ... again, not ideal.

[XD 351 Ute]

Some of you blokes must be fortune tellers or something.
I was having this exact discussion at work without even knowing about this thread!
I asked the exact same question, as a workmate and I were talking abut the ups and downs of the world.
Needless to say, I am now a little bit wiser..

Ed

[Bushbasher]

What is Deflation?

Hmmmm, that would be a soft on.

[castellan]

Will I lend money, if I get nothing back = who is going to lend and if so how much will they bother to.

If I get payed less, I can only buy less = ?

When they loose control over it, inflation will take off like it did in Germany after WW1.
Now they only had to deal with a 200% inflation not 20 or 30 % but only 200 %
Now that took a person like Hitler to stop that 200% and turn it around and he strengthened that nation to be so powerful that it scared the daylights out of the wealthy bankers that they had to created WW2 because there goose was cooked without a bloody war, as Germany would of wiped the floor with them down the track with out firing a shot.

It works like this, one is very wealthy and is only just a sly filthy cunning little criminal low life with no regard for others, just like a common criminal, as he is just a parasite who lives on the misery off others ( a blood sucking Vampire !! ) Dead to the world and their is the problem you see. one has to deal with such parasites because they will lead all others into hell. they are Diabolical blighted and malevolent as their works prove it.
Now did they led others astray with their workings, and who was looking out for the majorities best interest ? another bunch of Vampires ?

[zdcol71]

What the HELL have I just read, and can someone pinch me and tell me I'm on a car forum!!!

[baboon]

Originally Posted by zdcol71

What the HELL have I just read, and can someone pinch me and tell me I'm on a car forum!!!

Pressing the release valve and letting air out in a tyre is called deflation.

[Bushbasher]

Originally Posted by castellan

Will I lend money, if I get nothing back = who is going to lend and if so how much will they bother to.

If I get payed less, I can only buy less = ?

When they loose control over it, inflation will take off like it did in Germany after WW1.
Now they only had to deal with a 200% inflation not 20 or 30 % but only 200 %
Now that took a person like Hitler to stop that 200% and turn it around and he strengthened that nation to be so powerful that it scared the daylights out of the wealthy bankers that they had to created WW2 because there goose was cooked without a bloody war, as Germany would of wiped the floor with them down the track with out firing a shot.

It works like this, one is very wealthy and is only just a sly filthy cunning little criminal low life with no regard for others, just like a common criminal, as he is just a parasite who lives on the misery off others ( a blood sucking Vampire !! ) Dead to the world and their is the problem you see. one has to deal with such parasites because they will lead all others into hell. they are Diabolical blighted and malevolent as their works prove it.
Now did they led others astray with their workings, and who was looking out for the majorities best interest ? another bunch of Vampires ?

what?

[xtremerus]

Is that medication just a placebo?

[Syndrome]

Originally Posted by chevypower

I am all for deflation. It will bring the value of the currency up, and everything in relation to it down. In simplified terms, everything becomes cheaper, and currency actually becomes a good investment, rather than investing in commodities like land, oil, gold etc. It's hard to do because in order to do it, there has to be less supply of currency and people would complain there isn't enough to be distributed to everyone. Most people look at $5 and say it's worth $5. They don't look at in terms of $5 could be worth 10L of milk or 5L of milk. They think in terms of "I just want more money." So they print more money, it becomes worthless, and you need more of it to buy things (inflation). Inflation encourages property investments and gives investors a sense of security. I'm more for flooding the market with resources, limiting supply of currency, and making everything cheap. Even though wages would decrease.

Be careful what you ask for.

[ford man xf]

castellan actually makes a good point because it was Germanys instability and inflation woes (among other things) that helped Hitlers party to power and thus WW2.

[Work Horse]

Originally Posted by ford man xf

castellan actually makes a good point.

[XW-BAXR6T]

All im gonna say is this. Good luck to those of you who have large mortgages or debts...

[DJR David]

Deflation, seeing a picture of Pauline Hanson naked...........

[CoupeKing]

Originally Posted by DJR David

Deflation, seeing a picture of Pauline Hanson naked...........

http://www.youtube.com/watch?v=miij4vtTIV4

[DJR David]

Originally Posted by CoupeKing

http://www.youtube.com/watch?v=miij4vtTIV4

dare i click it?????????

[castellan]

Originally Posted by Work Horse

Most Aussies are so ignorant and hopelessly stupid it would take years for them to understand and that's only if they were willing to listen, but they are not willing, thinking she will be right mate type of foolishness.

History proves it all, and if you lack understanding of the history you will certainly repeat the same mistakes.

Ignorance is bliss some say. but when one comes a over t well

[ILLaViTaR]

Originally Posted by XW-BAXR6T

All im gonna say is this. Good luck to those of you who have large mortgages or debts...

I couldn't care for low interest rates. I see loans as no different than the dole. If not worse (using other peoples money to invest and indulge in commodities, rather than bread and water).

The only difference between banks and welfare is it's to feed you toys and greed and not bread and milk.. but yes most importantly you have to pay it back but..

That's kind've the entire problem, a lot of people don't as the law allows them to forclose on their debt and **** the world over and create a GFC. Scumbags with 95% LMI's risking/expanding everything on the brink getting way to ahead of themselves willing to risk it all at the expense of literally everyone.

Over-investing is the entire reason the GFC occured after all, if people can't pay it back don't lend it out simply because you're an apathetic pathetic bank who's willing to bring the world down and go into a GFC by giving loans to anyone off the street... as you're covered by the mortgage insurance and other arrangements that allow you to pass the buck onto the public..

[ILLaViTaR]

Originally Posted by castellan

Most Aussies are so ignorant and hopelessly stupid it would take years for them to understand and that's only if they were willing to listen, but they are not willing, thinking she will be right mate type of foolishness.

History proves it all, and if you lack understanding of the history you will certainly repeat the same mistakes.

Ignorance is bliss some say. but when one comes a over t well

dun diggit we don dard dot ourselvs anther bluddy communist!

[ILLaViTaR]

Originally Posted by castellan

Will I lend money, if I get nothing back = who is going to lend and if so how much will they bother to.

If I get payed less, I can only buy less = ?

When they loose control over it, inflation will take off like it did in Germany after WW1.
Now they only had to deal with a 200% inflation not 20 or 30 % but only 200 %
Now that took a person like Hitler to stop that 200% and turn it around and he strengthened that nation to be so powerful that it scared the daylights out of the wealthy bankers that they had to created WW2 because there goose was cooked without a bloody war, as Germany would of wiped the floor with them down the track with out firing a shot.

It works like this, one is very wealthy and is only just a sly filthy cunning little criminal low life with no regard for others, just like a common criminal, as he is just a parasite who lives on the misery off others ( a blood sucking Vampire !! ) Dead to the world and their is the problem you see. one has to deal with such parasites because they will lead all others into hell. they are Diabolical blighted and malevolent as their works prove it.
Now did they led others astray with their workings, and who was looking out for the majorities best interest ? another bunch of Vampires ?

This is exactly how the German people felt in relation to the zionist movement in Germany after the first world war. Racist Jewish Lawyers, Doctors, politicians at the top the German people were so downtrodden and robbed from their own country such a radical movement/one of the worst atrocities of all time was accepted by the public. If you were alive back then you could understand the need for the war (although nazi's are *** crazy with their propaganda/views and all).

So eventually it's only natural that Coles, Woolworths, Rupert and Gina will eventually push our very public into another final solution, if they keep milking/pushing the public to the brink like they once did 70yrs ago.

[Work Horse]

Who said this thread couldn't get more wacky?

[2011G6E]

Deflation is what should happen to prices when the government removes a tax or charge or tariff, and the input costs to companies become lower, so they can "deflate" their prices, lowering them, to encourage customer purchases because they can still make a profit.

You know, the same way that we've all seen electricity prices sharply dropping once the carbon tax was removed, or the way all imported cars will surely become cheaper when there's no locally made cars anymore and the government will therefore drop all protectionist tariffs and taxes as there's no local industry to compete with...

...erm...

[Franco Cozzo]

Originally Posted by 2011G6E

Deflation is what should happen to prices when the government removes a tax or charge or tariff, and the input costs to companies become lower, so they can "deflate" their prices, lowering them, to encourage customer purchases because they can still make a profit.

You know, the same way that we've all seen electricity prices sharply dropping once the carbon tax was removed, or the way all imported cars will surely become cheaper when there's no locally made cars anymore and the government will therefore drop all protectionist tariffs and taxes as there's no local industry to compete with...

...erm...

Same thing with prices of refrigerant and carbon tax, it raised the price through the roof on r134a for cars, the prices of a regas went up through the roof to match.

But they didn't come back down when the carbon tax was removed and r134a went back to normal pricing.

Funny that.

[steve.zissou]

why govt will do everything they can to stop deflation (including fubar everything)

you buy an investment (property for example) for 100,000. in 50 years time the house is worth 5 million as a result of inflation. but the actual value of the house hasnt actually increase very much in real terms - lets say its worth $130,000 in real dollars (price of the dollar when you first bought it).

So it really hasnt gone up that much in real terms but........ the govt wants you to pay tax on the 4.9 million profit you made . Are you starting to see the picture......

it gets better (for the govt)

When new money enters the system, the govt typically gets to spend it first (and the banks). So they increase the money supply but get to spend the money at pre inflation rates. You me and the postman typically get our extra money after inflation has increased prices (has you boss ever said, "hey, looks like inflation will be 10% next year, I had better get that pay rise in now" - dont think so.

and finally there's an even bigger kick in the nads. If the govt said they were going to tax every one 4% (or more) on every dollar they had (in the bank, in your pocket, in the back yard - doesnt matter) every one would go nuts. But this is effectively what they do via inflation. In 10 years your $100 might only be worth $50 - why? because some one made more $$$ available and who ever made those dollars is effectively taxing every one else that is holding dollars.

Now when you have deflation, things sort of work in reverse - like your house that you paid $100,000 for is only worth $80,000 in 50 years time. You get to claim a loss and pay less tax.

Which govt would allow that - none. Thats why the US has printed (i mean quantitative easing) about 3.5 trillion bucks since 2008.

[Stefan]

^^^^^^ which is why property is a "pretty safe" bet for investment. Government will do all it can to ensure property never becomes more affordable any sudden drop in property value would be an economic collapse.

[castellan]

Originally Posted by ILLaViTaR

dun diggit we don dard dot ourselvs anther bluddy communist!

Seeing as what I wrote got wiped what I put before.

I will put another way, I look down on radicals and communist, the far left wing and it's cunning foolish narrow minded filthy little sicking grubs and also the far right wing scum bags I understand them to be the same underhanded type of criminal filthy little moronic grubs as the far left, but just set on another agenda of madness.

So if you say could bend the left and right wing around and make a circle say, then give it a face like that of a clock, 12 O'clock is where the left and right meet and the far left mob start from 12 and go to 3 O'clock and the far right start at 9 O'clock and go to 12 O'clock ?

Well I could be ok with the subject from 3 O'clock to 9 O'clock, so I can swing there but never on the others.

I support sound ethical capitalism our monarch and Christianity because they have foundations for a future of hope.

Does that make me a communist ? no not even a socialist !