patrick.net

bob2356 says

The phrase was not renter it was rentier which he uses to refer to business and banks. He wasn't talking about housing. There is much more debt in day to day business operations than in housing.

Definition of RENTIER

: a person who lives on income from property or securities

You also pay rent on money, right?

bob2356 says

You still don't understand the concept. It wouldn't be deflation, it would be a very big loss. Even if the banks were very deservedly allowed to go bankrupt it still wouldn't be deflation. If it spread to the entire economy, not just housing, it would be deflation. Deflation is a systemic economy wide phenomena, not a loss in a single sector.

Deflation is defined as a lowering of the money supply. This happens when 1/3 of the banks go under as in the 30s or it is what should of happened in 2008, BTW we did have some of that anyway at that time period.

Sorry but any explanation more complicated is Keynesian BS.

bob2356 says

Rothbard was just plain wrong, mises even says so. Maybe you should actually read the ariticle, it's from mises.org.

Link me up

indigenous says

Just wanted to remind everyone of the Wogsters response:

PS, Patrick you might want to consider a cricket button in order to make things more efficient?

He's got you cornered, just wait! ;)

This is timely. Here's a great article about how QE helped increase income inequality.

http://dealbook.nytimes.com/2014/10/22/how-quantitative-easing-contributed-to-the-nations-inequality-problem/

myob says

This is timely. Here's a great article about how QE helped increase income inequality.

http://dealbook.nytimes.com/2014/10/22/how-quantitative-easing-contributed-to-the-nations-inequality-problem/

It's a horrible article that has been critiqued in another thread.

indigenous says

If your coat is worn out, are you inclined to wait another year if there are discounts now, but you expect even bigger discounts a year from now?

Will people delay medical procedures in expectation of falling prices?

If deflation theory is accurate, why are there huge lines at stores when prices drop the most?

Bonus Question

If falling prices stop people from buying things, how are any computers, flat screen TVs, monitors, etc., ever sold, in light of the fact that quality improves and prices decline every year?

BONUS^3:

If we increase the minimum wage to $20 will this encourage or discourage people from obtaining higher education in the Medical/Science Professions?

If we increase the minimum wage to $15-20 how many convenience food chains will stay open?