Depression in the USA - Deflation verus Inflation

[Crypto Crude]

how you lot all feeling about this north korean crisis issue?

[Aaron]

how you lot all feeling about this north korean crisis issue?

War is inflationary so I guess central bankers around the world will be cheering The Donald on. You also start to wonder how nuts Donald Trump really is. From what I read Kim Jong-uun might not be the most stable and while he is leader he has everything if he loses the leadership then he has nothing so Kim has nothing to lose.
The more people Donald Trump kills the more popular he will become in America as the average American appears to enjoy war as long as they only have to watch it on TV and they feel safer for some reason. The terrorist hordes that threaten them daily are dying so it must be good.

[Aaron]

For me this is scarier than North Korea
http://www.stuff.co.nz/business/9173...bacco-tax-rise
Mind you being poor won't matter if we all die together in a nuclear war.
Well done Graeme Wheeler my crash cash is losing 1.2% per annum (2.2%-1.0%).

[Aaron]

Here is Liam Danns take on it
http://www.nzherald.co.nz/business/n...ectid=11841992
Good news growth growth growth. Higher prices making life harder for the average person, got to be good.
We are returning to a more normal inflation rate according to Liam. What a cheerleader for current economic thinking.
http://www.rbnz.govt.nz/statistics/k...household-debt
Notice a trend re household debt as a percentage of nominal disposable income what is Liam suggesting we carry on up because debt doesn't matter when central banks have got your back.
This graph is nominal income I wonder whether it would be better or worse if you looked at "real" inflation adjusted income. I wish the reserve bank would go back further than 1991 as well as it would be interesting to see what it was like in the 50s,60s and 70s.

[Aaron]

Macron wins in France, ex-banker in charge expect more of the same.
NZ celebrates rising inflation
http://www.nzherald.co.nz/business/n...ectid=11851316
Wheeler says he is happy not raising interest rates until $100,000 only buys a stick of gum and his multimillion dollar mortgage is manageable.(fake news)

[JBmurc]

An interview with Prechter, who released a ground-breaking book, “The Socionomic Theory of Finance,” at the end of December. In the 813-page book, which took 13 years to write, he proposes a cohesive model that takes into account trends in sociology, psychology, politics, economics and finance.

http://www.zerohedge.com/news/2017-0...aise-30s-looms


How to prepare for the coming crash

Make no mistake, a market crash is coming. There is no way to avoid it altogether or, as far as I know, how to tell when it will fall. The only way you can prepare for a crash is by ensuring your financial position is in top shape, meaning:

No excessive debt (mortgages, car loans and credit cards)
Keeping a cash ‘buffer’ for emergencies: Around six months of living expenses (rent/mortgage payments, utilities and food), and maybe an additional term deposit.
Maintaining a well-diversified portfolio

http://www.fool.com.au/2017/04/12/ho...-market-crash/

[Aaron]

Mario Draghi concerned about inequality??
http://www.cnbc.com/2017/06/26/europ...aghi-says.html

It has been argued that he and the other world central bankers have been largely responsible for exacerbating inequality since the GFC. What a d**k.
Is inequality really a problem? It is not a problem for at least 10-20% of the population.

[Aaron]

A repeat of what I have been reading
http://www.abc.net.au/news/2017-07-0...-order/8671756

Still nervous having savings in the bank (going backwards rapidly when compared to house price inflation). I am hoping for a crash in equity and housing markets to provide an opportunity to get rid of all cash. As a concept money has been greatly weakened in my opinion. I guess if Janet Yellen says we are unlikely to have a financial market crash in our lifetime she might be saying she can buy up the bond and stock market much like the Japanese Central bank is doing so if I were to guess, we might go to a monetary crisis where people lose faith in dollars before we get to the crash I am waiting for. Interesting times.

[JBmurc]

The U.S. economic
expansion is now
eight years old,
making it the third
longest on record,
exceeded only by the
expansions from 1961
to 1969 (9 years) and
1991 to 2001 (10
years).
Barron’s
1/7/17

[Aaron]

I read Liam Dann (NZ Herald)on why low inflation rates are bad for the economy. What a load of s**t. Actually I suspect the majority of people would have been OK with the inflation figures if there wasn't the massive central bank induced inflation of house and asset prices. Central banks are doing a wonderful job of creating inflation it is only in asset prices though so now we have a world of haves and haves nots. Ironically in an effort to keep things the same they are hastening change, for better or for worse.

I wish Liam Dann could be consistent
http://www.nzherald.co.nz/best-of-bu...ectid=11886739
He thinks inflation is important when it is his house going up in value but doesn't like it when hard working productive people try to keep up with the rentiers.
Although I would agree Oligopolies like the oil companies and monopolies like Fonterra need some govt intervention to try and limit abuse of their strong position.

Also is anyone else sick of the Fonterra ads about how great they are. Millions of dollars wasted trying to improve their image. What do they think we are Americans lapping up any bull**** their spin doctors put out. If anything it makes me suspicious they are doing something they think the general public won't like. To be fair they have been bashed a bit in the news regarding clean streams but I imagine there would be louder complaints if there was no milk for the morning porridge.