Inflation or Deflation and How It Hurts Preparedness

By | October 1, 2014

As a someone who’s primary client base for website development is small business start ups, I’m in tune directly to the real economy. The one the government says doesn’t suck. The one where you don’t get to fill the shopping cart but the welfare dregs still do.

When small businesses are starting up they need marketing to succeed. They are not starting up. So they don’t need marketing. They are not starting up because a new business, whatever it is, requires capital(money). Want to start a landscaping business? You’ll need a Trailer, Blower, Mower, Weed eater, Gas, and more. This all costs money. If the guy thinking of starting up a new business is in the hole already with $10K in debt he isn’t going to put another $3000-5000 on hit bloated credit card, starting a business. He can’t. Maxed out is maxed out.

We are reliving the days of 2007. The economy shut down then. Like a light switch it turned off. Housing died and businesses shuttered. Millions were laid off. The printing of 18,000,000,000,000 (that is $18 Trillion for us government school kids). Kept things afloat with inflation. This only prolonged the inevitable. Stock market and the investment class were the ones that benefited from QE 1,2, Infinity. Us proles were not given a dime. The Sinister then expanded those dependent on the government. They then took over health care in an attempt to make more of us dependent. They effectively broke our legs and then sold us the one wheeled broken wheelchair and expected our gratitude.

Rant off.

DeflationInflation is bad and so is deflation. Our economy depends on a balancing act. The reason the dollar hasn’t crashed; the world has no other reserve currency. So when turmoil hit’s Greece, Argentina, Venezuela, Iceland, Ireland, Guatemala, Mexico, Zimbabwe and others (some of which The Sinister foment) then we have the only safe bet in town, The Dollar. This will not always hold true, but it’s holding for now.

They can’t print more money. Not really. What they need to do is get out of our way and let Americans be the Capitalists they are and dream of being, It’s a good thing if there was any doubt where I stand. So the crash will come. Sorry to be the bearer of bad news. But this mess has been on it’s way since the 70’s when we took ourselves off the gold standard.

Still doubt me? Have you noticed the smaller bag of chips with the same price. The deodorant that just isn’t as big as before, but with the same price? That would be inflation. What the articles below explain is that the costs to make the chips and deodorant are dropping. But the prices are not dropping for the end product. And the end products are not increasing in size. Eventually the prices will need to fall. But they won’t.

The Inflation vs Deflation debate:
Source: http://finance.yahoo.com/news/inflation … 36947.html

One of the primary reasons for this extreme in profits is corporations are pocketing the excess profits they are receiving from the falling commodity input costs. They are keeping the deflation and instead of passing that deflation on to the consumer, they are passing on increased prices and smaller packages, having their cake and eating it too.

We live in a fragile global economy controlled by very few people. But the X factor is still WE THE PEOPLE. They can’t make us buy chips when we want to buy bullets or long term food. Europe is especially susceptible to problems in the global economy. They are socialist stealing 50% or more of the people’s money.

Europe is concerned with deflation:
Source: http://www.salon.com/2014/09/20/why_eur … deflation/

At first glance deflation doesn’t sound so bad.

“Anybody who doubts how bad it could get should look back to the last time the US caught a serious dose of deflation. They called that the Great Depression.”

Prices go down, what’s not to like?

Yet the cold economic reality means that when prices fall people stop spending, hoping things will get even cheaper. In response, businesses cut production and lay off workers. That means even less demand, and prices drop further.

By then, your economy’s in a vicious downward spiral.

Making things worse, those falling prices bring declining wages and worsening debt burdens.

So what? you ask. Here it is. It’s getting increasingly hard to prepare. To buy the things we want to buy to be ready for the storms we find in our lives. To attend the training we feel we need to attend such as weapons or medical training. If inflation has taken money out of our pockets and deflation doesn’t put it back because the companies are pocketing the money. What is the end result? What happens when Ebola or some other thing brings chaos to our shores? How prepared will we be when we can’t prepare?

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