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B4 The Bell Tuezelday October 19


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Without the fear of inflation, there would be ZERO reasons to buy stocks or hold stocks for that matter. They want you to believe in the church of inflate to keep you in the game.

Without inflation, the reason to buy stocks is for the dividend, and the prospect of dividend growth.

 

That's Finance 101 ... not Matrix disinfo.

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Well Bobby isn't the only deflationist, I too am in that camp and I think we are seeing it now and have been for sometime. Other than energy there is nothing you can't buy cheaper now than you could 3 years ago. There is no pricing power. Earnings stay up as volumes fall because plants are closed, wages are cut and people are canned-won't last!

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Without the fear of inflation, there would be ZERO reasons to buy stocks or hold stocks for that matter. They want you to believe in the church of inflate to keep you in the game.

Without inflation, the reason to buy stocks is for the dividend, and the prospect of dividend growth.

 

That's Finance 101 ... not Matrix disinfo.

But MH, in the current climate, the dividends are coming from coroporate borrowings and not earnings. There will be another time to buy and hold stock. Just not now. There will be an opportunity for a Buffett 2. Just not now

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Well Bobby isn't the only deflationist, I too am in that camp and I think we are seeing it now and have been for sometime. Other than energy there is nothing you can't buy cheaper now than you could 3 years ago. There is no pricing power. Earnings stay up as volumes fall because plants are closed, wages are cut and people are canned-won't last!

Not quite true, B -- I've been watching the "cola index." You used to be able to get a 24-pack for about 50-80 cents cheaper than the cheapest advertised sale prices I've seen recently. This happened about a month ago, suddenly cola was much more expensive.

 

Any talk about Cost Of Living Adjustment must include cola !

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Rising interest rates make borrowing less attractive. This decreased demand slows credit/money growth in the system. Less money is deflationary.

Yep ... that's the other line in the supply-demand graph.

 

You and I will cut back our borrowing as rates go higher, because we can't afford it ... or because the banksters cut us off.

 

But there's one actor in the economy who isn't constrained by the traditional supply-demand curve. That's GOVERNMENT.

 

Gov't WILL BORROW its fiscal deficit regardless of rates. The presence of this 'wild card' sovereign actor, with the power to tax and print currency, nullifies the traditional credit supply-demand analysis which does constrain households and businesses.

 

Central planning of credit will blow out ... in an orgy of inflation.

**sigh**

 

You and HB are going to be proven so wrong. I told you to throw out you college econ books - they are totally worthless in the current environment unless you need a door stop.

 

And with that I'm outahere permanently

 

Ciao Stoolies and may the farts be with you.

:o :o

 

Oh-h-h-h-h no you don't!!

 

HEH!!

 

Come back here!!

 

First Hypertiger, now yobob?

 

We can't have all the deflationists decamp!!

 

:( :( :( :(

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Well Bobby isn't the only deflationist, I too am in that camp and I think we are seeing it now and have been for sometime. Other than energy there is nothing you can't buy cheaper now than you could 3 years ago. There is no pricing power. Earnings stay up as volumes fall because plants are closed, wages are cut and people are canned-won't last!

Uhh... I'm in the deflationist camp too.

 

But I would invite you to send your kid to a university in 'merika, and pay for your own health insurance, and then assert that nothing isn't cheaper now than it was 3 years ago.

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Inflation vs. Deflation

 

Inflationists believe the PTB will do everything in their power to save the system.

 

Deflationists believe the PTB either cannot or will not save the system.

 

Both agree we are headed for big-time deflation. The argument is in the timing -- sooner or later.

 

With the Government 77 trillion dollars in debt, a 100+ trillion dollar derivative pyramid and dim-witted gangsters in charge of the system,

 

I put my bet on real soon.

 

Yobob may be heading for the hills at just the right time.

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Well Bobby isn't the only deflationist, I too am in that camp and I think we are seeing it now and have been for sometime. Other than energy there is nothing you can't buy cheaper now than you could 3 years ago. There is no pricing power. Earnings stay up as volumes fall because plants are closed, wages are cut and people are canned-won't last!

I've been saying the same, "Death Of Brands" - no pricing power, etc.

 

Yobob, don't try to take all the credit for being the lone deflationist (though I perveive Stagflation prior to deflation - which I believe is happening now). When Al Says "it won't be as bad as the Sevenities" - you know he's freaking out.

 

Now get your ass back here!

 

Pretty please?

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