Deflation

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Does the drop in commodities mean the Fed is losing the war against deflation?

Yes
6
30%
No
14
70%
 
Total votes: 20

User avatar
Jahbulon
Posts: 3901
Joined: Wed Nov 17, 2010 1:22 pm

Deflation

Post by Jahbulon »

Does the drop in commodities mean the Fed is losing the war against deflation?

Yes
No

TSPKip
Posts: 1225
Joined: Mon Sep 27, 2010 7:34 am

Re: Deflation

Post by TSPKip »

Battles versus Wars.

The current battle against the rising dollar is influenced by the falling Euro. If the value of commodities sold in dollars remains stable, but the relative value of the dollar goes up compared to other currencies, the commodity price will go down. If decreased manufacturing worldwide [recession] causes lower demand of the commodity, again the price will go down.

The current Euro value downward is a greater deflationary weight than the Feds' easing policy [QE II +] with the result of short term deflation, at present. The end of the WAR of deflation has yet to be concluded in ~ 6 months, IMHO [after the Euro fell and printing of US dollars continues.]
Seek Wisdom where it can be found.

TSPNerd
Posts: 183
Joined: Tue Dec 28, 2010 1:59 pm

Re: Deflation

Post by TSPNerd »

And just a month or two ago, everyone was running around screaming about inflation risk because of QE. World economy crashes because of austerity = deflation city.

User avatar
kucheka
Posts: 158
Joined: Mon Dec 20, 2010 10:22 am

Re: Deflation

Post by kucheka »

Nerd,

Exactly. And as Ron Paul climbs the polls, we're gonna get more of that screaming up until the Iowa caucuses (and probably beyond: see Krugman's op-ed today).

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Fund Prices2022-08-18

FundPriceDayYTD
G $17.00 0.01% 1.56%
F $19.04 0.12% -8.83%
C $65.31 0.24% -9.23%
S $70.24 0.46% -15.82%
I $33.59 -0.29% -14.83%
L2065 $13.10 0.09% -11.96%
L2060 $13.10 0.09% -11.95%
L2055 $13.11 0.09% -11.94%
L2050 $26.96 0.08% -10.22%
L2045 $12.37 0.08% -9.53%
L2040 $45.43 0.07% -8.77%
L2035 $12.08 0.07% -7.94%
L2030 $40.50 0.06% -7.05%
L2025 $11.67 0.05% -4.74%
Linc $23.00 0.03% -2.07%

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