Against mounting evidence to the contrary, QE is still seen by some central bankers and more politicians as the elixir that can not only reverse deflation (considered to be Japan's problem, though some, including I, question … [...]
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Toil has produced the requisite 1000 words and time will tell whether it will appear @ URPE or not. If not I will post it here (I will post it here, regardless). Here are Professor Keen's 1000 words: Steve Keen (Debt Deflation ) … behind this correlation is that money is created “endogenously” when the banking sector creates loans, and this newly created money adds to aggregate demand—as argued by non-orthodox economists from Schumpeter through to Minsky [...] However, Minsky (1986) points that '' the size of the margins of safety determines whether a financial structure is fragile or robust and in turn reflects the ability of units to absorb shortfalls of cash receipts without triggering a debt deflation [...] McCulley also points out that human nature is inherently pro-cyclical, meaning, in Minsky's words, that “from time to time, capitalist economies exhibit inflations and debt deflations which seem to have the potential to spin out of control. In such … [...] So the BOJ very deliberately sent investors and politicians the signal they have been waiting for — that it was ready to deploy unconventional weaponry to lead Japan out of deflation . “When you set a goal, you have to show … [...] In the Depression, we pursued the “liqidantionist” line, that is to say, asset price deflation . This time, in 2008, we again saw a lot of asset price deflation . What is fascinating is what Minsky had to say bout the “stagflationist” [...] Boston University economics professor Laurence Kotlikoff plans to run for president as a third-party candidate. I had the pleasure of doing an in depth interview with him about a year ago. This story is one of many he appears in.Visit Kotlikoff-2012.org Preface: www.cbsnews.com 60 minutes did a second special report with Ben Bernanke that aired December the 5th. Bernanke was their only interview, and he indicated that inflation was necessary to bolster the economy. My work challenges that view by showing the effects it will have on your everyday person. www.ksla.com My message “Not only do we have less money to spend in this recession, the cost of basics like food and fuel continue to rise. During the great depression, prices actually fell. That’s deflation. The government wont allow that to happen this time, telling us inflation is necessary” SOT Peter Schiff CEO Europac “Right now the government is telling us that deflation is the problem; is the threat” Music pop: Jon Hopkins – Contact Note Deflation is defined as a fall in the general price level. This means the value of the money in your pocket increases and you are able to buy more. SOT Peter Schiff CEO Europac “…and we need to create inflation. And as the signs of that inflation become more obvious at first the government is going to claim victory, Ah ha we won!” Inflation is defined as a rise in the general price level. It means the value of the money in your pocket decreases and you are not able to buy as much … [...] Complete video at: fora.tv Dr. Janet Yellen, President of the Federal Reserve Bank of San Francisco, argues the most likely outcome of the recession is deflation, not inflation. She explains that decreased spending and lowered prices could “turn into outright deflation” if left unchecked. —– Amid the deepest recession of the postwar era, the Federal Reserve faces one of the gravest challenges of its 96-year [...] |
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Activist Post: Some Questions about Deflation
Japan , according to Bloomberg “has been battling deflation for more than a decade, with the average annual 0.3 percent decline in prices since 2000 damaging economic growth”. The New York Times reports that Japan's … [...]