Anyone hoping for deflation?

[harley]

When it gets that bad I think some people will be better off than others. But it will be like someone who is genetically unable to get the disease that is killing off almost everyone around. You may live, but in what kind of world will you live?

YouTube - ‪I Am Legend Bob Marley Scene‬‎

 

[MichaelB]

Can someone explain to me that Japan has experienced no inflation for like 18 years, and yet, the unemployment rate there is still very low (I think it's 4% or something)? Are the numbers rigged or something??

My mom is one of those "elderlies" in Japan and she loves the fact that the prices have been staying pretty much the same since she retired at age 72 10 years ago.

Increase of the elderlies living at the proverty level may have something to do with the breakdown of the core family unit.

Anyway, my mom knows someone who only gets about $500/mo (or was it $550/mo?) from his SS and he was accepted into a special care facility out of the city because he can no longer take care of himself (and his income more than qualifies him for the service.)

It doesn't sound that bad to me, but what do I know...

Japan has suffered deflation for almost 2 decades. The population is aging and declining, and spending less. What has kept business solvent and saved them from real hardship is exports, primarily to the US.

Deflation in the US is bad for the US because there are no consumers anywhere else to keep business volumes up. It is also bad for the global exporters for the same reason. Especially Asia, followed by resource exporters.

While I do not believe US or US/global deflation is likely, the impact is serious enough to have a little insurance.

 

[haha]

That 3% inflation multiplier in ER projections is a real bummer. I have 50% of my investments in high grade corporate and government bonds and a 3 years cash bucket, so should I be hoping to retire into a period of deflation?

Like the universe cares what we might hope for.

YouTube - ‪Doris Day - Que Sera Sera‬‎

 

[dex]

Like the universe cares what we might hope for.

http://www.youtube.com/watch?v=xZbKHDPPrrc

Thanks, we all need to be remembered of that every now and then.