Helena
Full time employment: Posting here.
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- Aug 27, 2006
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How deflation will change social mores.
[FONT=Verdana, Arial, Helvetica] The article discusses how deflation will change our lifestyle
and the things we value creating a different more real society.
This would be a huge paradigm shift not only in the economy
but in people... change [hopefully] for the better.[/FONT]
Minyanville - Market Commentary, Investing Ideas, Global Finance, The Economy
Some quotes:
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[FONT=Verdana, Arial, Helvetica] The article discusses how deflation will change our lifestyle
and the things we value creating a different more real society.
This would be a huge paradigm shift not only in the economy
but in people... change [hopefully] for the better.[/FONT]
Minyanville - Market Commentary, Investing Ideas, Global Finance, The Economy
Some quotes:
The long-term secular forces of debt revulsion and deflation continue to build and are showing up in social mood with increasing frequency. The question is what do these forces mean for our everyday lives, how will they manifest in popular culture and lifestyle?
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This is a rather straightforward manifestation of how society copes with more challenging economic times; by seeking a positive outcome from less work and less consumption, and by challenging the boom hypothesis that hard work is both critical to economic success and something worth valuing above time spent at home with family and children.
Yet another social manifestation of debt revulsion and anti-consumption preceding the breakdown of a debt bubble is the conscious attempt to revolt against the explosion of simulacra that the fiat currency-based debt bubble inevitably produces; simulacra in finance, food, fashion, art and culture.
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The Crisis of the Real
A significant consequence of the massive debt bubble we have experienced is the inevitable explosion in simulacra, of which derivatives are a prime example; the dissection of financial assets into increasingly discrete objects, or instruments, that ultimately displace the reality of the underlying asset and assume their own reality that exists separate and apart from the very thing upon which they were based. Thanks, in part, to extreme leverage, this new reality supersedes the original in both importance, and also fragility, attaining the ability to actually destroy the very asset upon which the derivative was based.
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What Next?
This debt revulsion and structural deflation demands a readjustment that has profound consequences for society. What does a revolt against the displacement of the "real" entail?
First, from a consumption standpoint, it entails a shift in focus, a change in patterns of accumulation and the valuation of material objects.
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