! Europe Crushed by Importing Chinese Deflation

[kiffertom]

carl has been calling this for a long, long, time! no one can argue the deflation case better than he can!

http://www.breitbart.com/Big-Peace/2014/11/10/Europe-Crushed-by-Importing-Chinese-Deflation

[General of Darkness]

Now keep in mind DEFLATION is FIAT positive. :mad:

Deflation occurs when the inflation (http://en.wikipedia.org/wiki/Inflation) rate falls below 0% (a negative inflation rate (http://en.wikipedia.org/wiki/Inflation_rate)). - CHECK

This should not be confused with disinflation (http://en.wikipedia.org/wiki/Disinflation), a slow-down in the inflation rate (i.e., when inflation declines to lower levels).[2] (http://en.wikipedia.org/wiki/Deflation#cite_note-2) Inflation reduces the real value of money (http://en.wikipedia.org/wiki/Money) over time; conversely, deflation increases the real value of money –- the currency of a national or regional economy. - CHECK

This allows one to buy more goods with the same amount of money over time. - CHECK

Economists generally believe that deflation is a problem in a modern economy because it increases the real value (http://en.wikipedia.org/wiki/Real_versus_nominal_value_%28economics%29) of debt, and may aggravate recessions and lead to a deflationary spiral (http://en.wikipedia.org/wiki/Deflationary_spiral).[3] (http://en.wikipedia.org/wiki/Deflation#cite_note-3) - CHECK

But my guess it has to do with this.

Credit deflation

In modern credit-based economies, deflation may be caused by the central bank initiating higher interest rates (i.e., to 'control' inflation), thereby possibly popping an asset bubble (http://en.wikipedia.org/wiki/Bubble_%28economics%29). In a credit-based economy, a slow-down or fall in lending leads to less money in circulation, with a further sharp fall in money supply as confidence reduces and velocity weakens, with a consequent sharp fall-off in demand for employment or goods. The fall in demand causes a fall in prices as a supply glut (http://en.wikipedia.org/wiki/Glut) develops. This becomes a deflationary spiral when prices fall below the costs of financing production, or repaying debt levels incurred at the prior price level. Businesses, unable to make enough profit no matter how low they set prices, are then liquidated. Banks get assets which have fallen dramatically in value since their mortgage loan was made, and if they sell those assets, they further glut supply, which only exacerbates the situation. To slow or halt the deflationary spiral, banks will often withhold collecting on non-performing loans (as in Japan (http://en.wikipedia.org/wiki/Economic_history_of_Japan#Deflation_from_the_1990s _to_present), and most recently America and Spain). This is often no more than a stop-gap measure, because they must then restrict credit, since they do not have money to lend, which further reduces demand, and so on.

[old steel]

So, it begins....

[crimethink]

So, they're going to crash it in the opposite-than-expected direction? But what about the unpayable debt? There are two choices: hyperinflation, or repudiation. The latter instead?

[palani]

But what about the unpayable debt? There are two choices: hyperinflation, or repudiation. The latter instead?
Another option which has proven successful in history: Agreeing to a change of government. This is what happened in 1868 with the 14th amendment. The debt of the deposed government ($346,681,016) has remained unchanged since 1878 and (I suspect) is not any part of the debt of the current United States government. This choice largely has to do with ILLUSION ... the illusion that the government has remained the same, has the same name, issues fiat money that looks the same.

[Carl]

Let me share the secret of understanding this; the richest amongst us have exactly the same amount of 'money' in their bank accounts as the poorest amongst us have in theirs, $0.00. The entirety of our economic system runs on bankster credit, that's what populates every deposit account in our system. Asset values determine how much credit banks have and whether or not they remain solvent. Asset values fall too much and the bank becomes insolvent, which means that they no longer have the credit that they used to populate deposit accounts. You deposit account transforms from being your source of liquidity into your bank's unpayable debt. You experience this transition as your bank closed, your debit card ceasing to function and your deposit account with a balance of $0.00, reflecting it's true content.

And that's deflation in a credit currency based system. By the way, credit has no legal status as money or currency so, neither the Fed or the government have any legal obligation to reimburse you for your bank account losses. Credit as currency is used at your own risk. And don't count on the FDIC to save you, they'll probably write you a check that no one will cash.

** If you understand this, then you will understand why "Bank Bail-Ins" are a total farce.

[mick silver]

nothing for nothing is that what you said carl about are paper money . carl has there been any more banks lock there doors

[Carl]

List of failed banks (http://www.bankrate.com/finance/savings/map-of-failed-banks.aspx)

They get everything and you get credited with a vacuous promise to pay in a fiat they don't have....

[mick silver]

thanks carl ... that's a lot of paper just this year ... 2014 list of failed banksFailed banksDate closedEstimated cost to DIF ($ millions)The National Republic Bank of Chicago, Chicago10/24/2014111.6NBRS Financial, Rising Sun, MD10/17/201424.3GreenChoice Bank, Chicago07/25/201414.2Eastside Commercial Bank, Conyers, GA07/18/201433.9The Freedom State Bank, Freedom, OK06/27/20145.8Valley Bank, Fort Lauderdale, FL06/20/20147.7Valley Bank, Moline, IL06/20/201451.4Slavie Federal Savings Bank, Bel Air, MD05/30/20146.6Columbia Savings Bank, Cincinnati05/23/20145.3AztecAmerica Bank, Berwyn, IL05/16/201418.0Allendale County Bank, Fairfax, SC04/25/201417.1Millennium Bank, National Association, Sterling, VA02/28/20147.7Vantage Point Bank, Horsham, PA02/28/20148.5Syringa Bank, Boise, ID01/31/20144.5The Bank of Union, El Reno, OK01/24/201470DuPage National Bank, West Chicago01/17/20141.6

Read more: http://www.bankrate.com/finance/savings/map-of-failed-banks.aspx#ixzz3ItCRPuWS
Follow us: @Bankrate on Twitter (http://ec.tynt.com/b/rw?id=aDV7hM4FKr36Epadbi-bpO&u=Bankrate) | Bankrate on Facebook (http://ec.tynt.com/b/rf?id=aDV7hM4FKr36Epadbi-bpO&u=Bankrate)

[Horn]

So, it begins....

You mean more aimless .gov programs that flood the streets with easily printed dough?

[old steel]

You mean more aimless .gov programs that flood the streets with easily printed dough?

Well if that is the case none of that dough seems to be making it's way into my pockets.

Why is that?

[Horn]

Well if that is the case none of that dough seems to be making it's way into my pockets.

Why is that?

You aren't among the chosen, if you were a single mother of 6 in Detroit you'd be closer.

Or import/export major of some foreign port bank, even better.

Dollar inflation goes directly to control or salvo points, you've been bypassed as already under its pillars.