"Capt. JG" wrote in
easolutions:

Which is fine until the price drops start to multiply out of control.
Then, you get deflation. While fine in the short term, as it "creates
money," it's bad if it turns into a death spiral. This leads to lower
prices, lower wages, then lower prices, lower wages, etc., until you
get a $1 for a days work. Not a good scenario for a modern economy in
my opinion.



You're dead on correct. But, alas, something "funny" is going on. Food
continues to skyrocket in price. A friend in Brewster, NY, told me he
paid $5.40 per pound for CHICKEN at their local supermarket! Lube oil
prices anywhere you go seem to be CONTROLLED at $11.7x per gallon for
Rotella T, here in Charleston. Oil prices should, by now, have
responded to the collapsing crude and gas prices. Gold prices are down
20-25%, but retail prices, that we are told are in such awful
conditions, have NOT DROPPED at all and have INCREASED in many places.
Is the government tampering with the printing presses at the FED handing
out trillions of fake dollars causing this? 90 Yen to the dollar means
my money is quite worthless...and getting more worthless...but gold
prices are down....

Something is being manipulated by the usual suspects. If business is SO
bad, all prices would have dropped drastically, now. I know someone who
visits China twice a year to buy silk flowers for their wholesale
florist business, hundreds of thousands of them. His suppliers are
giving him fire sale pricing on the products stacked up in warehouses
all over China. One of his contacts took him to a warehouse full of
unsold toys from famous American companies. $20 American toys can be
purchased for 6 CENTS! They're nearly giving them away! I checked the
toys....not a nickel drop in prices to move them at WalMart. They're
buying them for 6 cents and selling them for $20, a tidy profit no
matter how you spin it.