View Full Version : Are we in deflation now?

September 13, 2010, 20:40
Or is it businesses struggling to survive?

I keep seeing advertisements for things I never would have believed. For instance, a Logan's Steak House ad was just on- all the steak you can eat (with two sides) for $15.99 (called the Unlimited Grill- it was just on again!). Steaks, not chicken. (No offense meant, chickens.) This one was just on, but there have been others.

Inflation is the inceased cost of things and deflation (due to the lack of money) is unusually inexpensive items. Right? Looks like that's where we are from the ads. BUT, the money supply is way up, as I understand. What is going on here?

Also, I keep watching the "price" of gold. An increase to me is really just a decrease of the value of the fiat dollar. It's up about $50 from about 2 weeks ago, maybe three weeks ago. No real surprise to me there, but if it goes up $50 in a couple of days, well that's different.

Pipe up Gates. I want to hear what you have to say about this.

FAL freek
September 13, 2010, 21:05
We've been in deflation for quite some time now. End of July many companies were bragging about how their bottom line were above expectations. Thay also casually mentioned they accomplised it by big layoffs. Surprisingly the next month (August) the economic indicators that were expected to take a big decrease in folks filing for unemployment actually went up 12 thousand from the month before. Now those same folks that saved their corporations by being told to take 1 for the team are not bringing home the bacon have lost their discretionary funds for the houshold. Whoda thunk?