Friday, February 27, 2015

Whatever gets you through the night...

This morning all the news outlets are telling me that we are in the "good" kind of deflation and this is nothing to worry about. In fact - this kind of deflation is awesome for consumers.

On the other hand they are also fawning all over themselves about how wage inflation is on the cusp of exploding.

These two things can not exist at the same time. Period!

If deflation was so awesome - why doesn't the Fed make that the benchmark instead of 2%? Answer me that batman?

I already know the answer to this. This is of course is not the good kind of deflation. This is the kind of deflation where wages get cut. I've only experienced actual deflation one other time and my life, and it emphatically wasn't the good kind of deflation. Half of the Valley was on wage reduction. And you sucked it up because the alternative was worse.

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