Speaking Personally
Three
Important Stories
Deflation has become inevitable
ECRI: Economy Remains at Cycle Low
Quotes and Pointers
'Elderly people reasonably dread falling: falls are the leading cause of death from injury in adults 65 and older.
Perhaps they need not worry anymore. This month the Japanese company Prop begins selling a wearable set of air bags to protect against falls. The device looks something like a fishing vest with a fanny pack attached. When its built-in motion sensors detect a fall, it inflates two air bags — one around the hips, the other around the neck — in a 10th of a second. Instant Michelin Man. It retails in Japan for approximately $1,400.'
http://www.nytimes.com/interactive/2008/12/14/magazine/2008_IDEAS.html
'
I reread my piece on Fisher’s Theory of Debt Deflation in Great Depressions the other day. One of the more confusing aspects is his assertion that the dollar “swells” as debt deflation takes hold. What he meant, of course, is that deflation increases the quantity of assets and the likely investment return each dollar purchases as deflation wrings debt and misallocation of capital out of the economy.
It is now clear to me that policy makers in the West are determined to apply every available resource to underpinning failure, misallocation and executive excess. As this discourages the honest saver from parting with cash, policy makers are ensuring that deflation will wreak its havoc on the financial and real economies of the world. Only when that deflation has played out and rational policies that reward market-based management and returns are restored will it be worthwhile to invest again. In the meanwhile, any wealth saved securely from state seizure will "swell" to buy more assets in future - a key aspect of deflation and a key means of restoring the control of the economy into the hands of more farsighted savers and investors.'
http://londonbanker.blogspot.com/2008/12/deflation-has-become-inevitable.html
'As a leading indicator, the WLI is demonstrating that economic conditions in the future are going to be worse than they are today.'Steven Hansen
Out and About on the Net.
et alli is cross posted at The Intelligence Forum
A.Word.A.Day from Wordsmith.org: pleach