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what are indicators of deflation before it hits?
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<p>[QUOTE="SilverSurfer, post: 963787, member: 21603"]I'm still not a believer in deflation. Even if the economy was dieing for deflation because nobody had any money and goods abound aplenty, I've never known any business of lowering their prices. Usually, they will offer deals to get people to buy, like buy one, second one is free. Or they might move more items with a sale like, "pay what you did in 1970, sale." But, this won't last. </p><p><br /></p><p>Land has value but if you aren't buying any nor selling any, who cares what the value is? Rent, want lower rent, you have to move to a new location. No landlord lowers his rent to existing renters. Food, they'll have sales to move items temporarily, but the sales won't be permanent. Entertainment, as the number of people able to afford going to the movies decreases for lack of money, I can only see the price of a movie ticket going up to cover the lost revenue due to lack of ticket sales, much like what happened when the VCR came around.</p><p><br /></p><p>P.S. I wonder if this talk about deflation wasn't sparked by some official like the fed in order to throw people off of their "preparing for inflation" game. What better way to get people to sell their assets like gold and silver and invest that money into something like the stock market.....Yeah, that's the ticket.[/QUOTE]</p><p><br /></p>
[QUOTE="SilverSurfer, post: 963787, member: 21603"]I'm still not a believer in deflation. Even if the economy was dieing for deflation because nobody had any money and goods abound aplenty, I've never known any business of lowering their prices. Usually, they will offer deals to get people to buy, like buy one, second one is free. Or they might move more items with a sale like, "pay what you did in 1970, sale." But, this won't last. Land has value but if you aren't buying any nor selling any, who cares what the value is? Rent, want lower rent, you have to move to a new location. No landlord lowers his rent to existing renters. Food, they'll have sales to move items temporarily, but the sales won't be permanent. Entertainment, as the number of people able to afford going to the movies decreases for lack of money, I can only see the price of a movie ticket going up to cover the lost revenue due to lack of ticket sales, much like what happened when the VCR came around. P.S. I wonder if this talk about deflation wasn't sparked by some official like the fed in order to throw people off of their "preparing for inflation" game. What better way to get people to sell their assets like gold and silver and invest that money into something like the stock market.....Yeah, that's the ticket.[/QUOTE]
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