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- March report "How Revolutions, Wars and Plagues are Harbingers of 'Great Changes' in Societies and in Economics" published. http://bit.ly/2y4LJZQ
- Dow Jones down 6% from its highs & falling fast. How much more will it fall before the Fed stops pretending the data supports a rate hike?
- (1/2) Global stock markets are now nearly as oversold as at the market low in October 1987. Expect a powerful and tradable rally of 20% or so from here. Cover all shorts and go long the most oversold stocks. However, do not expect new highs.
- Before any more money can be loaned to Puerto Rico, existing debt must be restructured, and largely repudiated.
- Most are no doubt hoping for the end of their terms as central bankers to come as quickly as possible. http://bit.ly/2vr6tsT
- UBS Says It's Time to 'Warm Up' to Gold @SchiffGold http://t.co/ZBtHRx7WS5
- If This Is a Recovery, We Don't Want to See the Next Downturn @SchiffGold http://t.co/p92k7yR23d
- November report "Is the Age of Democracy a passing Phase in the History of the West and the World?" published. http://bit.ly/2y4LJZQ
- Would you let your cat play with a 9 grand on a ball of yarn? http://bit.ly/2ArHoQ7
- Question: If the Fed is about to raise interest rates how will they prevent the stock market from crashing? Answer: By not raising rates!
Tuesday, December 1, 2015
Deflation caused by economy growth makes people richer, right?
I'm having a real understanding problem after studying some libertarian views. Some libertarians in my country (Germany) publicly talk about the fact that we could be around 6 times richer with the economic growth alone. They explain it with the fact our economy had an average growth of around 3% per year over the last 60 years. The result according to them should have been a currency value around 6 times as much. The reason for them that it didnt have such growth was the inflation of the currency through central bank and private banks. Makes kind of sense. Then I read stuff from Jörg-Guido Hülsmann and find a video of him talking about deflation. He says that deflation, even caused by economic growth in a free market will not only lead to falling prices but also to falling wages. This is - according to Hülsmann - because the employers anticipate falling prices even more and adjust their future prices and therefor their employees wages as well immediately. He explains, that the wages for the workers will fall less than the prices for goods, because the goods will be either used by the consumer goods producers OR by the production goods producers NOT BY BOTH (less competition). But the workers will have the choice to work either in the one or the other area and therefor will be able to negotiate better wages. My question: What is true? And is there a possibility to show other people how much more money people could have by now in a free society with an ordinary job (taxation left out)? The first methode was always quite compelling but I dont know anymore if its true to austrian economics or if Hülsmann is. Maybe I just didn't understand it right aswell? Any help is welcome, thanks alot!! P.S. here is the video of Hülsmann at the right timestamp: https://youtu.be/LhKC6F_-uzk?list=PLDFA82051066933E9&t=1191