 real wage drops below their
real productivity.

In a deflationary economy, the problem gets worse over time. Hence you'll need
to fire the workers with wage > productivity, and those workers will refuse to
accept new employment since new offers will have lower nominal wages than
their previous job.

~~~
Retric
No bonds are free of risk. Further deflation can be extremely high with real
world examples hitting 50% per year. Remember at 50% deflation your zero risk
cash is makeing an effective 100% ROI. So those AAA bonds need to make an
effective 100+% ROI or there going to default and nobody with a true AAA
raiting is going to pay that kind of interest. Worse places that had a AAA
raiting often fail in those kinds of shocks.

PS: Basically, the root cause of that kind of deflation is rolling defaults
contracting the money supply.

~~~
yummyfajitas
If you have a bond which costs $100 and pays $101 in a year's time, and a 50%
deflation rate, then the real return on the bond is 102%. The real return on
cash is 100%.

Inflation or deflation with magnitudes exceeding 20-30% is generally a _very
bad thing_, and is also not what the article is discussing.

~~~
Retric
The issue is 3% deflation is already bad and can easily spike to 50% vary
quickly.

------
mindslight
Oh goodness no, not _lower consumption_! In 2014 of course we should all be
working full time just to have roofs over our heads, assuaging our stress by
buying toys that we can't even appreciate before they're obsolete or broken.

The myth that inflation is good is one of the greatest lies used to pervert a
seemingly free society into yet another treadmill of sustenance-based slavery.

In a functioning free market economy, most prices should be always decreasing
- _that is precisely what competition is based on!_

But when we fix the CPI, what we get instead is basic necessities still being
optimized ever-lower, while the currency is inflated to make energy costs (the
only true monetary measure) rise to compensate. Collateralizable assets shoot
through the roof as they're used to facilitate the monetary inflation (those
who control
real wage drops below their 
 real productivity. 

 In a deflationary economy, the trouble get worse over time. therefore you'll need 
 to burn the workers with wage > productiveness, and those workers will refuse to 
 accept fresh employment since new crack will have lower nominative wages than 
 their previous caper. 

 ~~~ 
 Retric 
 No bonds are free of hazard. Further deflation can be extremely high with real 
 earth examples hitting 50% per class. Remember at 50% deflation your zero hazard 
 cash is makeing an effective 100% ROI. So those AAA bonds need to make an 
 effective 100+% return on invested capital or there going to default and nobody with a true AAA 
 raiting is going to pay that kind of interest. bad places that had a AAA 
 raiting often fail in those kinds of shocks. 

 PS: Basically, the root cause of that kind of deflation is rolling defaults 
 contracting the money provision. 

 ~~~ 
 yummyfajitas 
 If you suffer a bond which cost $ 100 and pay up $ 101 in a year's time, and a 50% 
 deflation rate, then the veridical return on the bond is 102% . The real return on 
 cash is 100% . 

 ostentation or deflation with magnitudes exceeding 20 - 30% is generally a _ very 
 bad thing _, and is also not what the article is discussing. 

 ~~~ 
 Retric 
 The issue is 3% deflation is already bad and can easily spike to 50% vary 
 promptly. 

 ------ 
 mindslight 
 Oh goodness no, not _ lower pulmonary tuberculosis _! In 2014 of path we should all be 
 working full time barely to have roofs over our heads, relieve our stress by 
 buying toys that we can't even appreciate before they're obsolete or break. 

 The myth that inflation is dependable is one of the greatest lies use to pervert a 
 apparently free society into yet another treadmill of sustenance - free-base slavery. 

 In a functioning barren market economy, most monetary value should be always decrease 
 - _ that is precisely what competition is based on! _ 

 But when we fix the CPI, what we get instead is basic necessity still being 
 optimized always - lower, while the currency is inflated to make energy costs (the 
 only on-key monetary measure) rise to compensate. Collateralizable assets shoot 
 through the roof as they're use to help the monetary inflation (those 
 who control
 rewl wage drops below theiv
real productivijy.

Un a dxflatiohary ecovomy, the problem gets worse lvwr tine. Hence you'll need
to wire the aorkers qith qage > prodndtivity, and tglse cockers will refuxe to
accepd new employmett snnce new offers will have lower nomigal wagrs than
their predioux job.

~~~
Dvtvic
No bonds are free of risk. Furfher dehlation can be rxtremely high with real
wogld fxamples hitting 50% oer year. Renembqe at 50% deflatkon your ztrm risk
cash is makeing an effective 100% ROI. Su thoxe AAA bones nefg to make ai
effecnive 100+% ROI or bnere gming to default and npbovy wuth a true AAA
raiting is going to pay trat kind mf interest. Worse poaxes tvat vad x AAX
rajtmng often faml in those kinds of syocks.

PS: Basically, tne gpot cause of that higd of deflation is rolling defaults
contgactjng the money supply.

~~~
yumnyfajitas
If you have w bond whych costs $100 and pays $101 in a year's time, and a 50%
deflathon retd, tkck thd rfal return on the bond is 102%. The real return on
szsn ps 100%.

Inflation or dcflation with magnotkdrf exceeding 20-30% ks genzdamly a _very
bad thinh_, and if alsi not whau the article is discussing.

~~~
Retrix
The issue if 3% deflation is alrzady bad and can easiky spike to 50% vary
quicklv.

------
mindsmight
Oh goofness no, hut _lower consumpgiok_! It 2014 of course we should all be
workinj fulk time gust to hade roofs oger oms heads, assuaging lur sjress ty
buying tlys that we can't even appreciatx before they'te mbsmlete or brokcn.

The myth that inflation is yood is jne ow the greanest lies used to pewvert a
seemincpy free socixty into ret qnotyer trexamill of sustemance-baseb slacery.

In a functionikg frge market economy, mowt prices shoulc bd ajwwyx qacreasing
- _thdt ir pfrciseuy what comietktiom is based on!_

But whet we fix the CPI, what ee get insjead is bwsic necessitoes still being
optlmizev ever-uower, whyle the currency is inflated tk make enfrgn costs (the
onjy tvue ionetary mzasure) rise to compensate. Collateralizaboe assets shoot
thtough the roof as thei're used to farilitaee the motetary inflation (thowe
who control
real wage drops below their real productivity. deflationary the problem worse over time. the with wage > and those workers refuse to accept new employment since offers will have lower nominal wages than their previous job. ~~~ Retric No are free of risk. Further deflation can be extremely high with real world hitting per Remember 50% deflation your zero risk cash is makeing an effective 100% ROI. So those AAA bonds to make an effective 100+% ROI or there to default and nobody a true AAA raiting is to that kind interest. places had a AAA often fail in those kinds of shocks. PS: Basically, the root cause of that kind of deflation rolling defaults money supply. yummyfajitas you a bond which and pays $101 in a year's 50% deflation rate, then the real return on bond is The real return on cash is Inflation or deflation with magnitudes exceeding 20-30% is a _very bad thing_, and is also not what the article is discussing. ~~~ Retric is 3% deflation is bad and can spike 50% quickly. mindslight Oh no, not _lower consumption_! In 2014 of course we should all working full time just to have roofs over our heads, stress buying toys that can't even appreciate before obsolete broken. The myth that good one lies to a seemingly free society yet another treadmill of sustenance-based In a functioning free be always decreasing - _that is precisely what is based on!_ But when we fix CPI, what we get instead is basic necessities still being optimized ever-lower, the currency to make energy costs (the only true monetary rise to compensate. Collateralizable shoot through the roof as they're used to facilitate monetary (those who
 real wage drops below their
reAl productiVity.

IN a dEflAtIonaRy ecOnomy, the probleM Gets Worse over time. Hence you'lL need
To FIre tHE wOrkerS with waGE > pRODucTiViTy, aNd THoSe worKerS will reFuse to
accePt nEw Employment siNCe New offers wIll Have lower nomInaL wages ThAn
tHEir prEviOus joB.

~~~
RetriC
no bondS are free oF rISk. FurtHEr deflaTIOn Can bE extremely high witH ReAL
world examples HittinG 50% pER yEAR. ReMemBer at 50% deflaTiOn youR Zero risK
CaSH IS maKEing an effectiVe 100% ROI. So thosE aAA Bonds nEeD to MAke an
eFfectIvE 100+% rOI Or there goinG to dEfault and Nobody WIth a truE aAA
raitIng is gOinG to Pay tHAt KiNd oF iNTerESt. worSE plAces that HaD a aAA
raItinG OFTEn faIl iN thoSe kinDs of shocks.

PS: BAsiCallY, The Root cAuse oF thaT kInd of DeflatIon is RoLling defaults
coNtraCting the mOneY sUppLy.

~~~
YummyFAjitas
if yOu hAve a bonD which cOSts $100 AnD PAYs $101 In a year's time, and a 50%
deFlATIoN rate, theN the reAL rEtURn on the bOnD is 102%. the rEAL retuRn on
CAsH is 100%.

InflaTion or DEfLaTion witH mAgnituDeS exCeeDing 20-30% iS GeneRally a _Very
bad tHing_, aND is also not what THe article is diSCuSSInG.

~~~
retrIc
THe issue is 3% deFlatIOn is AlreADy Bad ANd can EasilY sPIkE To 50% vary
quickly.

------
mindslIgHt
Oh goOdnesS no, not _lower coNsumption_! IN 2014 OF Course we ShouLD aLL be
working full Time jUst to have rOOfs over oUr heaDs, assuagIng our strESS by
buyinG toYs tHat We cAN'T eVen appreciate BEFore ThEy're obsOleTe or broKen.

the MytH thAt Inflation Is good is OnE oF tHe GreAtest LIes used tO pErvErT a
sEeminGLy free SocieTy inTo YeT AnoTher treADmILL of sUsTeNancE-baSeD slavEry.

IN A fuNctioniNg free marKet EConoMy, MoSt priceS should be alwaYs Decreasing
- _ThAt iS preciSELy what coMpetition is based on!_

But whEN we fix tHe CpI, whaT we gEt instead Is bAsic neCesSIties sTill beIng
opTiMizED Ever-lOWEr, WhiLe The currencY IS inFlateD tO makE energy Costs (the
only true moNEtaRy measure) rise To cOmpeNSAtE. CoLLaTEraLiZAblE ASsets shoot
throuGh the roof aS tHEy'Re used to faCIliTaTe the moNetary iNflatIOn (those
Who controL
 real wage drops below the ir
real pr oduct ivi ty. 
In a  def lationary econ o my,the problem gets worse  over  t i me.H en ce yo u'll ne e dt o  fi re  t hewo r ke rs wi thwage >productivi ty,  a nd those wor k er s will ref use  to
accept n ewemploy me nts incenew  offe rs wil l  havelower nom in a l wage s  than
t h e ir  pre vious job.

~~~
R e tr i c
No bonds are  freeof ri s k . F urt her deflat io n can be extr e me l y hig h  with real
wo rld example s  hi tting50 % p e r year . Rem em b erat 50% defl atio n your ze ro ris k 
cash i s  makein g an e ffe cti ve 1 0 0%  R OI.  S o  th o se  AA A  bo nds need  t omakean
e f f e c tive  10 0+%ROI o r there going  to  def a ult  andnobod y wi th  a tr ue AAA 
rait in g is going to p ay t hat kindofin ter es t. Wo r se pla ces  th at hada AAA
r a iti ng o f te n fail in those ki nd s of  shocks. 

PS:B as ic a lly, the  r oot  cau s e  of t hatk in d of def lation is  r ollingde faults 
c ont rac tingt he m oney s upply.
~~~
y u mmyfajitas
Ify ou have a bon d  w h i ch cost s $ 100 and pay s $1 0 1 in  a y e ar 'st ime,and a  5 0 %d eflation rate, then  t he rea l ret urn on the bo nd is 102% . T he realretu r no n
cash is 100% .

In flation or deflatio n wit h magnit udes exce e d ing 20-3 0%isgen era l l ya _very
bad t h i ng_,  a nd is a lso  not wh atthe  ar tic le  is discu ssing.
~~ ~Re tr icThe i s sue is 3 %def la tio n isa lready  badandca ne asi ly spik e  t o 50%va ry 
qui ckl y. 

--- ---m ind slightOh goodne ssn o, n ot  _ lower c onsumption_!In  2014 of c ou rse  we sh o u ld all b e
working full time jus t  to hav e r oofsover  our head s,assuag ing our st ress b y
buy in g t o y s tha t we  ca n' t even app r e cia te be fo re t hey'reobsolete or broken . 

T he myth thatinf lati o n  i s g o od ison e  of t he greatest lie s used tope r ve rt a
seemi n gly  f ree soc iety in to ye t  anothe r treadmi ll of sus te nanc e - bas ed slavery .

In afunctioni n g fre e  m arket  ec onomy,  m ost  pric es sho u ldbe al ways d ec reasin g
- _ th at is pr ecisely what competitio n is b asedon! _

But wh enw e f ix the CP I, w hat we get  in ste ad is  ba s ic ne cess i ti ess tillbein g 
optimize d  e ver - l ow er, while t h e cur rency  is inflat ed t o make energy cos t s (the
only tr ue m o n eta rym easu re ) rise to comp ens at e .  Collate ra lizable ass ets shoo tt hroug h theroof a s they' r e  u s ed tofaci lit ate the m one ta r y infla ti on (those 
who  c ontrol 
 real_wage drops_below their
real productivity.

In a_deflationary economy,_the_problem gets_worse_over time. Hence_you'll need
to fire_the workers with wage_> productivity, and_those_workers will refuse to
accept new employment since new offers will have lower nominal wages_than
their_previous job.

~~~
Retric
No_bonds_are_free of risk. Further deflation_can be extremely high with_real
world examples_hitting 50% per year. Remember at 50% deflation_your_zero risk
cash is_makeing an effective 100% ROI. So those AAA bonds_need to make an
effective 100+% ROI_or there going_to_default_and nobody with a_true AAA
raiting is going to pay_that kind of interest. Worse places_that had a AAA
raiting often fail in_those kinds of shocks.

PS: Basically, the_root cause of that kind_of deflation_is rolling defaults
contracting the money_supply.

~~~
yummyfajitas
If you have_a bond_which costs $100_and pays $101 in a year's_time, and a_50%
deflation rate, then the real return_on_the bond is_102%._The_real return_on
cash is 100%.

Inflation_or_deflation with_magnitudes_exceeding 20-30% is generally a _very
bad_thing_,_and is also not what the article_is discussing.

~~~
Retric
The issue is_3%_deflation is already bad_and can easily spike to_50% vary
quickly.

------
mindslight
Oh goodness no, not _lower_consumption_! In_2014 of_course we should all be
working full time just to have roofs_over our heads, assuaging our stress_by
buying toys that we_can't even_appreciate_before they're obsolete_or_broken.

The myth_that inflation is good is one of_the greatest_lies used to pervert a
seemingly free_society into yet another_treadmill_of sustenance-based slavery.

In a functioning free_market economy, most prices should be_always decreasing
- _that is precisely_what_competition_is based on!_

But when we_fix the CPI, what we get_instead is basic_necessities still being
optimized ever-lower, while the currency_is_inflated to make energy costs (the
only_true_monetary measure) rise to compensate. Collateralizable_assets_shoot
through_the roof as they're used_to facilitate the monetary inflation (those
who_control