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by deelowe 1926 days ago
Because we are. Without taking action to curb it, the US will start to see deflation take hold. This is due to an overall aging demographic who are beginning to leave the workforce, an overall increase in savings/investment across the population, lowered rates of consumption, the younger demographic having less children, higher rates of education and on and on.

This has already begun to in both Germany and Japan. In the former, they've been able to curb things through government intervention. Japan on the other hand has really struggled.

1 comments

On the contrary the price of up-keeping a household has increased dramatically.

30-40y ago it was not uncommon for a single pension to cover all expenses of:

- food

- car or two

- paying a mortage

- having 4 kids going to school

- other household expenses

- saving up money

/

Currently it is not possible. How in such a case do you still think we live in deflation times?

I would rather say that “some things” became cheaper due to technology advancements, but common things inflated so drastically, its literally impossible for young people to start families with sustainable life.

A fairly simplistic empirical examination of the monetary policy since 2009 proves this:

- Historically low mortgage rates

- Decreasing bond yields

- Increasing withdrawals from 401k and other retirement funds

- Increased savings rates for the younger demographic

- Reduction in consumer spending

- Over a decade of QE

Low rates and reduction in consumer spending are rather signs of recession not deflation..

From 2008 crisis pretty much every country in the world is printing money like crazy. Its easy to print more digital numbers, its harder to gain actual land to inhabit ppl.

Thats why properties and land gain so much value lately and thats why its the biggest issue of them all - huge inflation in the housing department.