Deflation of prices hits Canada in June
A recession as deep as this one is causing deflation but no wants to admit it
Stephen Pate, NJN Network, Charlottetown, Prince Edward Island, Canada, July 18, 2009 with story from Statistics Canada
Canada’s normal inflation turned into a deflation in June according to Statistics Canada. The amount is only 2/10ths of 1% but the trend in the chart is clear. We are headed into deflation which is the precursor to a possible depression.
It doesn’t take a rocket scientist to see deflation in US housing. There is a joke that you can buy nice houses in good American neighborhoods on your credit card. Once expensive homes are selling for less than $100,000 and some below $50,000.
The talking heads – economists and TV wags – are telling us deflation is not going to hurt. They rationalize it away as the result of falling oil prices. Their job is to prop up the financial system and convince you that everything is hunky dory. In fact, you should invest what you didn’t lose last year back in the stock market according to them.
Blaming price deflation on oil alone over simplifies it. People are getting used to the idea you can get things cheaper now, and maybe even cheaper yet later on.
Why buy now? Wait for the lower price.
GM is offering up to $8,500 off cars. Why buy now? Soon they will offer $10,000. We just bought the latest and greatest hybrid from Toyota and people were falling all over themselves to give us a half price interest deal, $3,000 no wait how about $6,000 off? Better still, the boss wants to throw in another $1,500.
How do you buy one of the hottest cars in the market at $7,500 off list? It’s called deflation.
How do you get the bank to give you a discount? Deflation.
Inflationary increase in money supply
People think the stock market is going up. Well it is but only because the US Fed us pumping the money supply another $2.6 trillion by September. That’s more than 100% and some people calculate the effect as 1500% because of the local and international pools of US $.
The fed is planning moves that would more than double its balance-sheet assets by September to $4.5 trillion from $1.9 trillion. Whether expressing approval or concern over the fed’s intentions, most commentators fail to understand the real magnitude of the projected expansion of the US monetary base because they don’t take into account the amount of dollars circulating abroad. Market Skeptics
That should be inflationary along with all the funny money the Canadian government is spending but it is not. The reason is simple – the new money is lining the pockets of the rich while more and more people join the unemployment line. The only thing the new money is inflating is the stock market.
Very soon after they government pumps the money out, they will have to pull it back in. Otherwise, the US dollar will become as worthless as Germany money in 1923.
This is the calm before the storm.
Heads in the Sand
Exactly right. Most people fail to get it. They choose to listen only to the economists on the 6 o’clock news stating the worst is now over. Research the Federal Reserve and that’ll open some eyes. The US is on life support. We ain’t seen nuthin yet folks.
Silent Do Gooder
These are challenging times and we need to stay calm and think things through – not just panic and react. Fear, panic and emotional reaction got us into this mess and it is certainly not going to get us out of it.
We also need to realise – here, now – that we have long crossed the line into a fully-fledged fascist dictatorship. It has hidden itself to most people this far, but it is about to lift the veil.
It is no longer an option to do nothing or passively acquiesce to authority out of fear or apathy. Or, at least, it’s not if we care about our freedoms and, most importantly, those of our children and grandchildren who will have to live almost their entire lives under a global jackboot of sheer, undiluted evil.
The word ‘evil’ is much overused and I don’t say it lightly; but we are dealing with evil in the sense that the word is the reverse of ‘live’. Those behind the conspiracy to turn humans into little more than computer terminals are anti-life. They have no respect for it and no empathy with those who suffer the consequences of their actions, no matter how appalling.
It is time now for people to join together and look out for each other. There are more of us than there is of the elite ruling party. They spew out untruths and spin to control the masses by keeping the majority of the population fearful.
When people are fearful they are much easier to control and research shows they spend more money,increase personal debt. This is what is happening in the majority of families today.
It does not have to be this way, just say no, everyone is tired of being taxed into bankruptcy; I want to enjoy my time on earth, I want to enjoy my family, my husband/wife; collectively we all want to enjoy life.
Change the old status quo, become part of the solution, help shape your families future, get involved. If you do not, you will only get more of the same. The new you can join with your neighbours to make a better tomorrow for everyone.
What if the majority decide to do nothing – what changes? Do you want your children to be enslaved to the Big Wheel for their entire lifetime?
It is GUT CHECK time now.