Welcome to the Permanent Portfolio Forum!
On a slightly different note, I always find it interesting how those pushing the hyperinflation theme love to collect U.S. Dollars. For instance, if you visit Shadow Stats you can buy a subscription to their services for a fee – in U.S. Dollars. Now, a hyperinflationist would argue that they are using those dollars to buy hard commodities so that’s a valid point, but the problem is that there are no signs of hyperinflation in the Shadow Stats subscription service. In fact, in real terms, the subscriptions are deflating! If one goes back and reviews the cost of the service it has remained remarkably stable in price:(Figure 1 from July 16th, 2006)(Figure 2 from May 12th, 2008)(Figure 3, from August 28, 2011)According to the US government inflation should have caused those subscriptions to surge to $197 in 2011. But your Shadow Stats subscription has actually gone down in price since 2006 because inflation has risen a total of 13%+ according to the CPI. Of course I am cherry picking here and I am not showing the data in terms of gold or what could be viewed as a general decline in our standard of living. In fact, I think one could make a good case for the idea that our standard of living has declined since 2006 (not the case since 1913 when the Fed was founded or since 1971 when we went off the gold standard, but that’s a different matter). But you can see the irony regardless.Source: Why Is There Deflation in Hyperinflation Forecasts?
Hilarious. Gumby, this has me wondering what other hyperinflationists have deflated the prices of their newsletter subscriptions. Gary North and Howard Ruff, for example.
Gumby... I think that plays into broker fees as well... deflation is a lot harder to justify 1% fees during than inflation is.And if it's not here now, it's "just around the corner."
Quote from: moda0306 on September 01, 2011, 04:14:45 PMGumby... I think that plays into broker fees as well... deflation is a lot harder to justify 1% fees during than inflation is.And if it's not here now, it's "just around the corner."That's an interesting point. Though, I sort of feel like deflation happens when no customers are showing up (lack of demand) and businesses are forced to lower their prices — something no one really wants to do.