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Re: The Declining Dollar Erodes Personal Savings
Old 05-16-2006, 08:32 PM   #41
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Re: The Declining Dollar Erodes Personal Savings

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Originally Posted by camberiu
According to this logic, no one should be buying computers and electronics (everyone holding their dollars in anticipation of cheaper goods tomorrow) and companies like SONY, Compaq, HP and IBM would not be investing on cheaper and faster computers, video games or larger LCDs. After all, the computer/electronic business are in constant state of "deflation". Please read "The Blessings of Deflation" by Llewellyn H. Rockwell Jr. for a different point of view.
That's exactly what people are doing, and profit margins for PC's get smaller and smaller, notice how long we've been running on Pentium 4's? Ever been to a mom and pop computer shop? They charge you 3% to use a credit card instead of cash, that's how small profit margins are now. Sure, we as consumers benefit in this small area, but innovation has slowed tremendously in the IT arena because of this. Video games are completely different, they are consumables, the profit margin is still huge, and the price of games has remained nominally risen, that's why that particular industry is booming.
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Re: The Declining Dollar Erodes Personal Savings
Old 05-16-2006, 08:35 PM   #42
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Re: The Declining Dollar Erodes Personal Savings

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Originally Posted by Laurence
That's exactly what people are doing, and profit margins for PC's get smaller and smaller, notice how long we've been running on Pentium 4's?
http://www.officeroutlook.com/news/I...ucture/944.htm

PC sales made a strong showing in the first quarter of 2006. Unit volume for desktops and notebooks sold to consumers was almost 6.4 million units from January through March, an increase of 10.1 percent over 2005. Revenues rose less than 2 percent as average prices tumbled from $982 to $902.
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Re: The Declining Dollar Erodes Personal Savings
Old 05-16-2006, 09:20 PM   #43
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Re: The Declining Dollar Erodes Personal Savings

Now let's not make a thesis on one quarter!

But you chose a quote that didn't reveal the full story. Notice in the second paragraph, desktop sales continue to tank. Notebooks are what is driving that increase. Consumers are adopting notebooks, and so PC makers will see some profit as this platform saturates, but just like desktops, the profit margin there will shrink to nil as well. Technology has always been about early adopters generating the profit, then the technology slides down the prestige sale from luxury to utensil. Apple understands this, sure thier IPOD is a huge success, but their long term health is dependent on Itunes, a steady stream of consumables.
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Re: The Declining Dollar Erodes Personal Savings
Old 05-17-2006, 06:36 AM   #44
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Re: The Declining Dollar Erodes Personal Savings

I'd also note that the economics of an individual industry are VERY different from what happens when the economy as a whole is in a period of deflation. Incidentally, when we get deflation is exactly when gold and other physical commodities are worth fewer dollars.
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Re: The Declining Dollar Erodes Personal Savings
Old 05-17-2006, 07:35 AM   #45
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Re: The Declining Dollar Erodes Personal Savings

Chrysler have just announced an Ultra Inexpensive Mini Van, people were complaining about the price of cars are were buying used ones.

I would guess about $12,000 in the U.S.?
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Re: The Declining Dollar Erodes Personal Savings
Old 05-17-2006, 08:05 AM   #46
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Re: The Declining Dollar Erodes Personal Savings

Our government is our largest employer....that seems like a problem to me.....since we pay for those employees.....hmmmm.....


Its like having a dozen kids and trying to find **** for them to do so that you can give them an allowance every week.


I'm broke, it is time for the kids to move the hell out.
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