tag:blogger.com,1999:blog-6616959642391988608.post7581508754624720153..comments2024-03-28T00:18:25.641-07:00Comments on Calafia Beach Pundit: Thoughts on deflationScott Grannishttp://www.blogger.com/profile/14028519647946868684noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-6616959642391988608.post-5854460033617582882010-11-26T03:48:18.447-08:002010-11-26T03:48:18.447-08:00The notion that a nation can "fall into a def...The notion that a nation can "fall into a deflationary trap" is amusing. The way to prevent deflation is to allow prices to fall and markets to clear. Specifically in the US we should be looking for ways to accelerate the foreclosure process.<br /><br />But despite all the damage that government policy has done to the economy over the last 3 years, a PCE deflator growing at 1% is not Charleshttps://www.blogger.com/profile/00607057013050715435noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-19778641660902320462010-11-25T10:50:18.249-08:002010-11-25T10:50:18.249-08:00Thanks Scott. Have a happy Thanksgiving. And to ...Thanks Scott. Have a happy Thanksgiving. And to you Marmico- try to have a happy Thanksgiving as well. I hope someone is nice to you today.Billhttps://www.blogger.com/profile/06910619601367464068noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-7228465791292893132010-11-25T09:17:17.902-08:002010-11-25T09:17:17.902-08:00Bill: I think the Case Shiller data on housing pri...Bill: I think the Case Shiller data on housing prices is arguably the best one to follow, and it shows that prices have essentially bottomed. Whether they drop a little more or not is not very important at this point. The most important thing is whether the economy continues to grow or not. Growth will trump everything in the end. So far it looks Iike growth will continue, so I think other Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-60854550908080547612010-11-25T09:14:16.378-08:002010-11-25T09:14:16.378-08:00Brian: I don't see any significance in what Ch...Brian: I don't see any significance in what China and Russia have decided to do with the dollar. Their decision to not use the dollar as an intermediary currency won't change the overall demand for dollars, since they would only hold the dollar briefly in their transactions in any event. This decision is not about whether they want to own dollars, it is just about whether they will use Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-34937252038160067982010-11-25T07:39:37.462-08:002010-11-25T07:39:37.462-08:00Well said Scott. Bankers fear deflation because th...Well said Scott. Bankers fear deflation because they cannot benefit from it as much as inflation. <br /><br />Mild deflation is the natural result of technological innovation unless central banks prevent it by printing money. <br /><br />There is nothing to fear. I would argue we should embrace it. <br /><br />Happy Turkey Day all!Public Libraryhttps://www.blogger.com/profile/00017383928897945054noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-79972949021630613032010-11-25T07:14:31.153-08:002010-11-25T07:14:31.153-08:00Great post Scott.
Also, what is your take on the...Great post Scott. <br />Also, what is your take on the significance, if any, of Russia and China leaving the dollar for their bilateral trade...Brian Hhttps://www.blogger.com/profile/14869071526968957308noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-64475490613407491932010-11-24T18:13:53.427-08:002010-11-24T18:13:53.427-08:00Scott,
Aren't you concerned about the fall in...Scott,<br /><br />Aren't you concerned about the fall in housing prices in both the existing and new home sales numbers?Billhttps://www.blogger.com/profile/06910619601367464068noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-11173669692681441132010-11-24T17:55:50.209-08:002010-11-24T17:55:50.209-08:00I concur wholeheartedly that federal spending, as ...I concur wholeheartedly that federal spending, as fraction of GDP and as debt, should be curtailed. I can't understand why we do not shoot for 16 percent of GDP as the proper federal level of spending, not the 21 percent mentioned in the recent ballyhooed report. <br /><br />That said, I think Japanitis is a real threat to the USA. <br /><br />Milton Friedman said all inflations are monetary,Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.com