Comments on: Deflation Could be Here – and It’s Not a Good Thing http://www.creditinfocenter.com/wordpress/2009/04/17/deflation-is-here-not-a-good-thing/ For the Up To Date News Tue, 07 Feb 2012 22:26:40 +0000 hourly 1 http://wordpress.org/?v= By: Kristy http://www.creditinfocenter.com/wordpress/2009/04/17/deflation-is-here-not-a-good-thing/comment-page-1/#comment-1991 Kristy Tue, 23 Jun 2009 18:19:28 +0000 http://www.creditinfocenter.com/wordpress/?p=1042#comment-1991 I thought I'd revisit this blog post and give you a link I saw about the economist's debate over deflation vs. inflation: http://money.cnn.com/2009/06/23/news/economy/inflation_deflation_debate/index.htm?section=money_latest I thought I’d revisit this blog post and give you a link I saw about the economist’s debate over deflation vs. inflation:

http://money.cnn.com/2009/06/23/news/economy/inflation_deflation_debate/index.htm?section=money_latest

]]> By: Phill Tomlison http://www.creditinfocenter.com/wordpress/2009/04/17/deflation-is-here-not-a-good-thing/comment-page-1/#comment-1777 Phill Tomlison Fri, 01 May 2009 18:20:41 +0000 http://www.creditinfocenter.com/wordpress/?p=1042#comment-1777 I'll put it simple, Deflation is good, Inflation is bad. http://theageofstupidity.blogspot.com/2009/02/fallacies-of-deflation.html I’ll put it simple, Deflation is good, Inflation is bad.

http://theageofstupidity.blogspot.com/2009/02/fallacies-of-deflation.html

]]> By: Kristy http://www.creditinfocenter.com/wordpress/2009/04/17/deflation-is-here-not-a-good-thing/comment-page-1/#comment-1752 Kristy Sat, 18 Apr 2009 17:10:06 +0000 http://www.creditinfocenter.com/wordpress/?p=1042#comment-1752 I got my official definition of inflation from Wikipedia, who listed 4 different sources as the basis of their definition. I'm going to stand by my explantion. I got my official definition of inflation from Wikipedia, who listed 4 different sources as the basis of their definition. I’m going to stand by my explantion.

]]> By: Constitutional Conservative http://www.creditinfocenter.com/wordpress/2009/04/17/deflation-is-here-not-a-good-thing/comment-page-1/#comment-1747 Constitutional Conservative Fri, 17 Apr 2009 18:50:16 +0000 http://www.creditinfocenter.com/wordpress/?p=1042#comment-1747 You said: "Inflation is a rise in the general level of prices of goods and services in an economy over a period of time. " No, it's not. Inflation is a rise in the money supply - like the current administration creating trillions of dollars which previously didn't exist. As people notice their money isn't worth as much as it used to be (since more is in circulation), prices must be raised since the money isn't worth as much - a Honus Wagner baseball card is worth $$$ because only a few exist, if thousands or millions suddenly appeared overnight anyone holding one would notice it's not worth anything anymore. The same principle applies to money (dollars) - by creating trillions in new dollars, it's a guarantee of rising prices in the future. Rising prices is a *result* of inflation (not the cause) - inflating the money supply and causing it to be worth less, so you need more dollars to have the same purchasing power. The Obama administration is attempting to fix the problems caused by credit expansion and deficit spending by .... credit expansion and deficit spending, inflating the money supply in the process. Rising prices will be *one* result of their inflationary policy, as the dollar becomes worth less. For a graph of just how bad the inflation has been, see: http://research.stlouisfed.org/fred2/series/AMBNS You said: “Inflation is a rise in the general level of prices of goods and services in an economy over a period of time. ”

No, it’s not.

Inflation is a rise in the money supply – like the current administration creating trillions of dollars which previously didn’t exist. As people notice their money isn’t worth as much as it used to be (since more is in circulation), prices must be raised since the money isn’t worth as much – a Honus Wagner baseball card is worth $$$ because only a few exist, if thousands or millions suddenly appeared overnight anyone holding one would notice it’s not worth anything anymore. The same principle applies to money (dollars) – by creating trillions in new dollars, it’s a guarantee of rising prices in the future.

Rising prices is a *result* of inflation (not the cause) – inflating the money supply and causing it to be worth less, so you need more dollars to have the same purchasing power.

The Obama administration is attempting to fix the problems caused by credit expansion and deficit spending by …. credit expansion and deficit spending, inflating the money supply in the process. Rising prices will be *one* result of their inflationary policy, as the dollar becomes worth less.

For a graph of just how bad the inflation has been, see:

http://research.stlouisfed.org/fred2/series/AMBNS

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