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Deflation Rearing its Ugly Head Around the Globe
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2014 Nov 14, 12:55am 48,785 views 155 comments
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Heraclitusstudent
2014 Nov 19, 10:21am
I still think the goal of economic activity is to fill the needs.
It so happens that industries that are not exposed to international competition have been disproportionately inflated compared to those that are. Sometime with the complicity of authorities. Still we are not down to my spoon and forks example.
The fault of keynesians is to assume you can compensate a persistent problem caused by globalization: low wages, with a solution which was always meant to be temporary by nature: debt. End demand may indeed be the problem in the US, but in the long term it can only come from wages.
Plus anyway if you really want international trade, you have to deal with nations saving half of what they take in (China). If this wasn't the case, the issue wouldn't be so bad.
tatupu70
2014 Nov 19, 10:35am
The fault of keynesians is to assume you can compensate a persistent problem caused by globalization: low wages, with a solution which was always meant to be temporary by nature: debt. End demand may indeed be the problem in the US, but in the long term it can only come from wages.
Is that what Keynesians believe? I think that's what our politicians have foisted upon us because they AREN'T actually Keynesians at all.
Heraclitusstudent
2014 Nov 19, 10:37am
Is that what Keynesians believe? I think that's what our politicians have foisted upon us because they AREN'T actually Keynesians at all.
Definitions.
What matters is how Keynes ideas are translated in the real world.
tatupu70
2014 Nov 19, 10:47am
What matters is how Keynes ideas are translated in the real world.
I understand what you're saying, but it seems wrong to call it Keynesian as it's not at all what Keynes advocated.
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According to the latest figures, deflation is now perched on China’s doorstep.
In September, China’s consumer price index was up 1.6%, but its producer price index fell 1.8%. The CPI increase was its lowest since 2010.
Economic growth is also receding. It’s hard to pinpoint the exact figures, because Chinese economic data is notoriously sketchy. But in September, demand for electric power, a “bellwether for China economic activity,†fell 8.4% from the prior month, the second straight monthly decline.
“Deflation is the real risk in China,†stated the chief economist at a Hong Kong bank.
http://www.globaldeflationnews.com/deflation-rearing-its-ugly-head-in-subtle-and-not-so-subtle-ways-around-the-globe/