Deflation Risks Seen Increasing Again

[cieldumort]

It's been quite a while since I have hit the com with several posts in a row, but the economic news dictates, so apologies in advance. It appears that the US economy may now be testing out the supposed durability of the recovery, with the risk of a "Double Dip" now seen rising.

LA TIMES
Deflation warning? Treasury bond yields plunge amid new rush

Comments

[be4u]

Just in my own little world, I've personally noticed a lot of examples of deflation lately, and the word is so foreign to me, I had to go look it up to make sure I understood the meaning. And I'm well over....errmmmm....30 years old. OK, I'm over 40.

I can't remember another time in my lifetime where there's been such marked deflation. I've been selling off household items (power tools, etc) to get by, and in preparing the ads I go to look up what these items currently sell for, to use in the ads.

I was shocked at how much prices have dropped. Too bad that isn't happening with gas or food....*sigh*

[cieldumort]

Yeah, isn't it just great? The only things going up in price the past 3 years as a whole have been gas and groceries. All else.. and in particular assets... deflated.

[be4u]

Thanks, but as I said, I did look it up.

Careful, sounds like you are comparing prices changes in an effort to see if we're in an inflationary or deflationary environment.

No, I was seeing what the current going rate was for certain (used) items I had for sale, to get an idea of what would be a reasonable price to ask for them. It was semi-encouraging to see that though people aren't buying new, that are buying used.

That being said, I think we're going to get back to some serious deflation again.

Sadly, yes I'd have to agree.