>Using data on almost 70 everyday products and services from multiple sources, our analysis showed prices dropped more sharply than the headline Consumer Price Index indicates, especially for goods that ordinary consumers buy>Deflation signals a lopsided economy where supply dwarfs demand. That hurts companies, which in turn hurts workers. As consumption weakens, businesses spend less, economic activity slows, debt burdens rise, which then causes more deflation. The downward loop, known in economics as a deflationary spiral, feeds on itself once entrenched.>Global institutions are sounding the alarm, with the International Monetary Fund projecting that consumer inflation in China will average zero this year — the second-lowest of nearly 200 economies it tracks. The Bank of Korea warned in July that China could export deflation to its trading partners.https://archive.is/oJEbf
>>61298250What happened to your neighborhood, bro?
>NOOOOOOOOOOOOOOO you can't just have things for cheaper!
>>61298278That's not the situation, Chang
>>61298250Noooo!!!! you can't just 0 inflation!!!
>>61298250Deflation is good, actually.
>>61298250>too many things are affordable>how...how can china survive
>>61298352You can hate China and still think deflation is good. Infinite growth in a closed system impossible and Keynesians are retarded.
Home price coming down fast too
Would this accelerate inflation problems in America possibly, if people decide to take on debt to buy goods if they think this is the cheapest it will be in the future?
>>61298250>consumer inflation in China will average zero this yearand that is a bad thing?
>>61298833Yes terrible you need 50 year loans for houses and 15 year loans for cars just as the founding banks intended
>destroy your domestic industries to produce things cheaper>things are produced cheaperHOW COULD THIS POSSIBLY HAPPEN DONT YOU KNOW THAT CHEAP THINGS ARE BAD
y'all making fun and jokes, but whats gonna happen when price reach 0? how's elon gonna get his trillion dollars?baka nobody thinks of the billionaires
to solve this china needs toimport 900 million indiansto stop making things and offshore all critical / heavy industrybring in goldman sachs to print 500 billion to goldman sachs900 year home loans, 120 year car loans
>>61298256>cleaning up the state just because a chink is comingits okay to be a fent ridden shithole but when the chinese come its NOT OKAY guys
>>61298833How do you skim the people through currency debasement if you have sound money backed by strong exports and gold reserves? It’s strong money by the way. Not falling prices.
Deflation is a good thingLibertarians were right about everything.
>>61298250lower cost of life is... le bad
>>61298993Deflation is bad for banks that print money with loans and their over-leveraged debtors. The more they loan, the higher asset prices inflate. Inflated prices mean more people have to borrow, and they have to borrow more. And more loans for greater amounts means more profits from interest. When the whole thing collapses in a chain reaction of defaults, the banks demand the government cover their bad loans by holding the balances of depositors hostage - if they go bankrupt, everyone's money disappears. Protected from the consequences of their previous bad loans, they can begin another cycle of lending. That's the boom and bust cycle we have been caught in for over 100 years. But they call it the "business cycle" to falsely imply it has something to do with the interaction of corporate profits and employee wages. When it's really leverage that allows businesses to turn a profit (and more recently, inflate their share prices) and individuals to purchase assets they couldn't otherwise and will sell later in the cycle for a profit.
>>61298250>supply dwarfs demand. That hurts companies, which in turn hurts workers.And so abundance becomes the source of distress and want. Plus ça change
>>61298833yes goythis is financial terrorism in fact
>>61298250the government can just step in and buy things to stimulate inflation
>>61298483China runs a credit economy, thus deflation = catastrophically bad. This is not Keynesianism, it's just basic maths.
>>61298250> shit costs less > people suddenly stop consumingwhat
>>61298250how can they have a proper and prosperous country without all that diversity which is, I'm told, reliably, is our biggest strength.
>>61298250It’s so funny.Deflation is what’s supposed to be happening right now, it’s the effect technological processes and improvements have on production. Improved processes make things cheaper to produce.We should have experienced massive deflation thanks to modern technology. But we didn’t. Instead all of that value was stolen and now we have runaway inflation.When will the western man wake up and demand his value back?
>>61300871it's almost like chinese state-run capitalism is the superior system to whatever the fuck the US is
>>61298250The idea that consumption leads production is a keynesian myth that has drawn the world into a gargantuan debt bubble and endless inflation. Prices SHOULD go down as accumulated capital makes production more efficient. Savings should GROW in value, not be sucked dry by inflation created by government, bankers, and their cronies.
>>61300593Why don't lenders and creditors just sign a contract that interest and debts have to be repaid adjusted for inflation or deflation?
>>61298250>export deflationHow the fuck do you do that?
>>61298250USA had deflation until Jews took over the country with the Federal Reserve.When you think about it, prices should be going down every year due to technological innovation.
>but at what cost?
Bump
deflation isn't real in a fiat based system, you can freely inject as much liquidity into markets at whatever velocity you wish in order to offset it. if there's deflation in china, it's because they're doing it on purpose, likely to shake out investors, especially foreign, and financially de-liberalize. part of the deflation spiral involves corporations moving assets off their balance sheets and replacing it with money, which china can freely supply (as can any modern government, or bank for that matter). meanwhile the good goy banks can be bailed out while the bad ones can be left to dieif a government wants total centralized ownership over all assets, then a deflationary regime is the way to do it. isn't that what a "communist" state wants?
>>61300871>We should have experienced massive deflation thanks to modern technology. But we didn’t. Instead all of that value was stolen and now we have runaway inflation.>When will the western man wake up and demand his value back?It's crazy nobody is talking about this.Not even the right does.
>>61298250>breaking: things are more affordable across the board>this is actually a bad thing goy
>>61298439>chang can't afford stuff>prices fall>profits fall>layoffs>no paycheck>chang can't afford stuff even harder
>>61300797You have the cause and effect mixed up.
>>61301471Far too many financially illiterates ITT
>>61301486deflation is a lot like the holocaust: it never happened and jews want to make sure it NEVER, EVER HAPPENS AGAIN.
Watch for money from the government in the mail. Stimmies are always a sign shit's going under.
>>61298400Good for ordinary people. Bad for banking class and money debasing coin clippers who do nothing productive. Also suppresses the emergence of a powerful oligarch class that inevitably undermines government to their benefit.
>>61300963lol. It’s the same thing. But it does raise an interesting point. It’s would then be in their interest to not only report the real rate of inflation. It would give them a further incentive to debase currency to maximise their skim. The good thing about this suggestion. Is that they wouldn’t be able to hide it. It would be out in the open and create a backlash.
>>61301056That is what happens anon. Then they make new things that are better and cost more to make because it's tech is still new. The older generation stuff gets cheaper, until it ceases production all together in which retail prices ceases and market value goes up. The 2026 chevy shitbox will cost more than the 2025 which will cost more than the 2024 and so on.You forget that supply and demand runs everything, make demand for new stuff will always be the goal of consumer businesses.
>>61302187the cost of new cars should be going down due to technological progress.
>>61298250>our analysis showed prices dropped more sharply than the headline Consumer Price Index indicates, especially for goods that ordinary consumers buyWHAT A COMPLETE SHOAH!
>>61301863>jewish bankers stop giving out loans because of the money shoah>businesses can't get loans to sustain business and fire their employees>"Good for ordinary people"you need to be 18 or over to post here.
>>61298250>prices going down is badlmfao
>>61300774china is just allowing all the bad investments to be written off, if it causes deflation so be it. China's currency is not the reserve currency so it cannot print like the US without causing runaway inflation.see what Keyenes actully says about inflation: "Lenin is said to have declared that the best way to destroy the Capitalist System was to debauch the currency. By a continuing process of inflation, Governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some. The sight of this arbitrary rearrangement of riches strikes not only at security, but at confidence in the equity of the existing distribution of wealth. Those to whom the system brings windfalls, beyond their deserts and even beyond their expectations or desires, become "profiteers," who are the object of the hatred of the bourgeoisie, whom the inflationism has impoverished, not less than of the proletariat. As the inflation proceeds and the real value of the currency fluctuates wildly from month to month, all permanent relations between debtors and creditors, which form the ultimate foundation of capitalism, become so utterly disordered as to be almost meaningless; and the process of wealth-getting degenerates into a gamble and a lottery. Lenin was certainly right. There is no subtler, no surer means of overturning the existing basis of Society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose."https://www.economicsnetwork.ac.uk/archive/keynes_persuasion/Inflation.htm
>>61300774"In the latter stages of the war all the belligerent Governments practised, from necessity or incompetence, what a Bolshevist might have done from design. Even now, when the war is over, most of them continue out of weakness the same malpractices. But further, the Governments of Europe, being many of them at this moment reckless in their methods as well as weak, seek to direct on to a class known as "profiteers" the popular indignation against the more obvious consequences of their vicious methods. These "profiteers" are, broadly speaking, the entrepreneur class of capitalists, that is to say, the active and constructive element in the whole capitalist society, who in a period of rapidly rising prices cannot but get rich quick whether they wish it or desire it or not. If prices are continually rising, every trader who has purchased for stock or owns property and plant inevitably makes profits. By directing hatred against this class, therefore, the European Governments are carrying a step further the fatal process which the subtle mind of Lenin had consciously conceived. The profiteers are a consequence and not a cause of rising prices. By combining a popular hatred of the class of entrepreneurs with the blow already given to social security by the violent and arbitrary disturbance of contract and of the established equilibrium of wealth which is the inevitable result of inflation, these Governments are fast rendering impossible a continuance of the social and economic order of the nineteenth century. But they have no plan for replacing it. "https://www.economicsnetwork.ac.uk/archive/keynes_persuasion/Inflation.htm
>>61304466>>61304451holy shit two of the worst people in history just made a great pointIt's funny that commies support inflation, I know they're retarded and think it's a good idea, but inflation destroys capitalism and makes socialism look more viable.
