PPRuNe Forums - View Single Post - Growing Evidence That The Upturn Is Upon Us
Old 23rd Jan 2009, 17:38
  #1696 (permalink)  
chrisbl
 
Join Date: May 2003
Location: uk
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There is a simple truth. My spending is someones income. If I dont spend someone else wont get paid.

If there is the prospect of deflation the I will hold off spending if I think prices will go lower.

If there is inflation, I will buy early if I think prices will rise.

Think what you did during the fuel price changes.
Filled the tank when the prices were shooting up and half filled the tank as they are falling.

The end game of deflation is that we get an appetite for not spending - then we are all stuffed. The banks end up with a load of money they are unable to lend and everything shuts down.

Japan had been in the stagnacy of deflation for the last 15 years with interest rates at zero for most of it.
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