Comments on: Deflating our way to Prosperity: Five Major Sectors of our Economy Pointing to Demand Destruction Price Deflation. Education, Wages, Housing, Stocks, and Automobiles. http://www.doctorhousingbubble.com/deflating-our-way-to-prosperity-five-major-sectors-of-our-economy-pointing-to-deflation-education-wages-housing-stocks-and-automobiles/ How I Learned to Love Southern California and Forget the Housing Bubble Thu, 09 Feb 2012 06:16:36 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: jerry suess http://www.doctorhousingbubble.com/deflating-our-way-to-prosperity-five-major-sectors-of-our-economy-pointing-to-deflation-education-wages-housing-stocks-and-automobiles/#comment-65790 jerry suess Mon, 06 Dec 2010 15:36:29 +0000 http://www.doctorhousingbubble.com/?p=1926#comment-65790 try buying a car, keeping it and paying for the repair work when it starts breaking down in less than 3 yrs. repairs are more expensive than buying a new one every 3 years and the new one will run instead of leaving you stranded like the old one. the car problem will only improve when the manufacturers start building a quality product again. this means you too,toyota and honda. we have westernized the japanese manufacturers and they too are putting out trash. c'mon america, get right!!!-jerry try buying a car, keeping it and paying for the repair work when it starts breaking down in less than 3 yrs. repairs are more expensive than buying a new one every 3 years and the new one will run instead of leaving you stranded like the old one. the car problem will only improve when the manufacturers start building a quality product again. this means you too,toyota and honda. we have westernized the japanese manufacturers and they too are putting out trash. c’mon america, get right!!!-jerry

]]> By: David http://www.doctorhousingbubble.com/deflating-our-way-to-prosperity-five-major-sectors-of-our-economy-pointing-to-deflation-education-wages-housing-stocks-and-automobiles/#comment-37370 David Mon, 29 Jun 2009 04:07:02 +0000 http://www.doctorhousingbubble.com/?p=1926#comment-37370 Inflation will take hold when nobody wants to take dollars for commodities, which are priced in dollars. Or they will demand more dollars or gold or some other currency. Then the dollar price will soar for raw materials. Meantime, the deflation in business activity, as described by the good doctor, will continue to get worse. The result will be a hyper-inflationary depression, just like Schiff et al have been warning about. The only way out will be to begin to sell off various parts of the country to satisfy the massive outstanding debts: airports, mines, mineral rights, blocks of foreclosed real estate. When that has been completed, the economy will collapse into a deflationary depression, with virtually no way out except to issue new currency based on gold or land or some other tangible asset. Got gold? Inflation will take hold when nobody wants to take dollars for commodities, which are priced in dollars. Or they will demand more dollars or gold or some other currency. Then the dollar price will soar for raw materials. Meantime, the deflation in business activity, as described by the good doctor, will continue to get worse. The result will be a hyper-inflationary depression, just like Schiff et al have been warning about. The only way out will be to begin to sell off various parts of the country to satisfy the massive outstanding debts: airports, mines, mineral rights, blocks of foreclosed real estate. When that has been completed, the economy will collapse into a deflationary depression, with virtually no way out except to issue new currency based on gold or land or some other tangible asset.

Got gold?

]]> By: compass rose http://www.doctorhousingbubble.com/deflating-our-way-to-prosperity-five-major-sectors-of-our-economy-pointing-to-deflation-education-wages-housing-stocks-and-automobiles/#comment-37357 compass rose Sat, 27 Jun 2009 20:16:46 +0000 http://www.doctorhousingbubble.com/?p=1926#comment-37357 Smaller portions for the same or more money is a hallmark of inflation. Where food is concerned: previously 15 3/4 ounce cans of soup now hold 14 ounces but are 20-30% more expensive. Boxes of prepared cereal products that used to be 18 ounces, now 12 or 10. ~ But an even more vile hidden inflationary force has been the systematic substitution of fractionated agri-industrial food-derived components for actual food. For example, fractionated sugars (like high fructose corn syrup) and fats (like hydrogenated fats) substituted for actual cane sugar and butter. By substituting these nutrition-neutral, downright health-compromising industrial components for actual food ingredients, manufacturers have gleaned billions of dollars from consumers. Look at how many processed food products have just these two ingredients in the top three. And these are not foods, but byproducts of industrial processes applied to mega-farm commodities. They are placeholders for food. ~ This is related to health care inflation, because as we pack our bodies with these non-nutrients, our bodies grow weaker and more prone to acute and chronic illness. People eat themselves into obesity as their bodies are seeking missing nutrients and getting only caloric ballast. ~ This is just one more example of the crisis point we face in the mega-scale post-industrial model where everything is engineered to skim as much profit as possible off a continually growing pool of sick, miserable, confused, angry, lazy human serfs. ~ Regarding the more usual form of inflation, t the deep discount stores where we purchase food ingredients, we have observed STRONG price upturns in the past year--20-60 percent! We buy everything wholesale, in bulk quantities, and very little processed food. Our fresh food comes from a variety of sources, including barter and very small local growers. So how the CPI can claim that food isn't going up is totally beyond me. Real food is more expensive, Frankenfood is more expensive and less nourishing...and the big agribusiness companies remain rich as Croesus. ~ rose Smaller portions for the same or more money is a hallmark of inflation. Where food is concerned: previously 15 3/4 ounce cans of soup now hold 14 ounces but are 20-30% more expensive. Boxes of prepared cereal products that used to be 18 ounces, now 12 or 10.
~
But an even more vile hidden inflationary force has been the systematic substitution of fractionated agri-industrial food-derived components for actual food. For example, fractionated sugars (like high fructose corn syrup) and fats (like hydrogenated fats) substituted for actual cane sugar and butter. By substituting these nutrition-neutral, downright health-compromising industrial components for actual food ingredients, manufacturers have gleaned billions of dollars from consumers. Look at how many processed food products have just these two ingredients in the top three. And these are not foods, but byproducts of industrial processes applied to mega-farm commodities. They are placeholders for food.
~
This is related to health care inflation, because as we pack our bodies with these non-nutrients, our bodies grow weaker and more prone to acute and chronic illness. People eat themselves into obesity as their bodies are seeking missing nutrients and getting only caloric ballast.
~
This is just one more example of the crisis point we face in the mega-scale post-industrial model where everything is engineered to skim as much profit as possible off a continually growing pool of sick, miserable, confused, angry, lazy human serfs.
~
Regarding the more usual form of inflation, t the deep discount stores where we purchase food ingredients, we have observed STRONG price upturns in the past year–20-60 percent! We buy everything wholesale, in bulk quantities, and very little processed food. Our fresh food comes from a variety of sources, including barter and very small local growers. So how the CPI can claim that food isn’t going up is totally beyond me. Real food is more expensive, Frankenfood is more expensive and less nourishing…and the big agribusiness companies remain rich as Croesus.
~
rose

]]> By: compass rose http://www.doctorhousingbubble.com/deflating-our-way-to-prosperity-five-major-sectors-of-our-economy-pointing-to-deflation-education-wages-housing-stocks-and-automobiles/#comment-37355 compass rose Sat, 27 Jun 2009 17:52:37 +0000 http://www.doctorhousingbubble.com/?p=1926#comment-37355 Slam dunk, Doc. I was particularly interested in your deflation of education thoughts. I worked most of my career in the Ed Biz, starting in my teens (to put myself through college and grad school on my own nickel). I watched college education go from a fortunate privilege that the rich got simply for occupying their niche but the rest of us had to work hard for, to the McDonald's model of franchising and debt-based consumerism. Pitiful. ~ In the meantime, over three decades of hiring young people, I watched them become increasingly unskilled, entitlement-minded, and clueless. I'd get resumes that were simply jaw dropping in their arrogance, cluelessness, and immaturity. Their first real challenge in life was their first real job, and most didn't do well. ~ In the meantime, as education was cheapened into a bauble, the working class kids who'd had to battle for their education watched rich kids, whose parents bought their degrees for them, get advanced into the really interesting and challenging positions. Then go on to be incapable of doing anything but making as much money as they can before trashing everything. There in a nutshell is the story of the last two economic bubbles (tech and housing). ~ I am all over education, but not when it is a commodified substitute for learning, growing, and evolving. There IS an Ed Bubble, and it is going to deflate. Just one more reason that this whole extended period of adjustment is going to be painful, ongoing, and horrendous, even as it is utterly necessary. ~ rose Slam dunk, Doc. I was particularly interested in your deflation of education thoughts. I worked most of my career in the Ed Biz, starting in my teens (to put myself through college and grad school on my own nickel). I watched college education go from a fortunate privilege that the rich got simply for occupying their niche but the rest of us had to work hard for, to the McDonald’s model of franchising and debt-based consumerism. Pitiful.
~
In the meantime, over three decades of hiring young people, I watched them become increasingly unskilled, entitlement-minded, and clueless. I’d get resumes that were simply jaw dropping in their arrogance, cluelessness, and immaturity. Their first real challenge in life was their first real job, and most didn’t do well.
~
In the meantime, as education was cheapened into a bauble, the working class kids who’d had to battle for their education watched rich kids, whose parents bought their degrees for them, get advanced into the really interesting and challenging positions. Then go on to be incapable of doing anything but making as much money as they can before trashing everything. There in a nutshell is the story of the last two economic bubbles (tech and housing).
~
I am all over education, but not when it is a commodified substitute for learning, growing, and evolving. There IS an Ed Bubble, and it is going to deflate. Just one more reason that this whole extended period of adjustment is going to be painful, ongoing, and horrendous, even as it is utterly necessary.
~
rose

]]> By: leon http://www.doctorhousingbubble.com/deflating-our-way-to-prosperity-five-major-sectors-of-our-economy-pointing-to-deflation-education-wages-housing-stocks-and-automobiles/#comment-37353 leon Sat, 27 Jun 2009 14:48:58 +0000 http://www.doctorhousingbubble.com/?p=1926#comment-37353 Doctor, What do you think about this movie ? http://video.google.com/videoplay?docid=7065205277695921912&ei=zypGSqfmNcSf-AbW8dT9Bg&q=zeit&hl=fr&emb=1&dur=3 Doctor,

What do you think about this movie ?

http://video.google.com/videoplay?docid=7065205277695921912&ei=zypGSqfmNcSf-AbW8dT9Bg&q=zeit&hl=fr&emb=1&dur=3

]]>