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Tom imo a lot of rent being removed in this area too... not just oil...
You look at European products over here and imo it is rent city in those prices... all that stuff is looked at as "luxury" "high performance" "German engineering" blah, blah
So with the austerity, if the firms start to reduce prices to help with unit and total sales, then that DETERMINED event leads to conditions that economists then term via a figure of speech their stochastic "deflation" outcome...
So Flassback here with "deflation is a master from Germany" is just using the stochastic (TIP OFF: "un-knowledged") economists terminology "deflation" in conjunction with the metaphor "master" and is not getting anywhere....
He misses the whole story of deterministic price setting and all the components of price (including all forms of rent)...
You take out a bunch of rent where it existed and then the stochastic economists look at that as their figure of speech "deflation" ....
Germans can be frustrating... so brilliant in some things, yet some naive in others.
They learn all the whole wrong lessons from the past, they link Hitler and WWII to hyperinflation, ignoring the deflationary bias and war reparations that created Weimar train wreck in the first place.
The whole pro-creditor policy and competitiveness obsession (when you already hold brutal trade surplus) is irritating. And the result is the disparity between the French and German evolution of wages, productivity share, etc. as despised in the article.
When oversees demand disappears you are in big trouble, as it's hapenning now. What's the move of German elites? More craptastic HARTZ reforms? Leep pushing the rest of Europe in the same direction (France, Italy, Spain) as if it solves anything?
Extend and pretend?
There won't be a 'global currency' as there was an euro to solve their distasteful policies in the last two decades this time...
Also I don't understand why other European politicians keep bending to German policy-making. GDP of Italy and Spain combined is higher than Germany, don't even need France.
Should just kick Germany out of the Euro and move forward if the euro project is to keep going. I'm pretty sure consolidated fiscal powers, banking union, and a democratization/political union of institutions would be much easier along the more like-minded southern European countries. Germans are too different to souther Europeans, their deflationary bias will never work in Southern Europe (it will neither in the North, but it always takes longer for them to realise).
Germany can continue with its deflationary bias with other train wrecks like Finland if they wish...
If we get some interest rate increase started over here, then a lot of rent will be put back into EZ product prices as US savers will have more USD income.... and then their "deflationary bias" will go away for them as the firms will get some ability to raise export prices in USD terms...
then Herr Schauble will see his current nemesis ECB start to soon raise also and get rid of more of their "deflationary bias"...
4 comments:
Tom imo a lot of rent being removed in this area too... not just oil...
You look at European products over here and imo it is rent city in those prices... all that stuff is looked at as "luxury" "high performance" "German engineering" blah, blah
So with the austerity, if the firms start to reduce prices to help with unit and total sales, then that DETERMINED event leads to conditions that economists then term via a figure of speech their stochastic "deflation" outcome...
So Flassback here with "deflation is a master from Germany" is just using the stochastic (TIP OFF: "un-knowledged") economists terminology "deflation" in conjunction with the metaphor "master" and is not getting anywhere....
He misses the whole story of deterministic price setting and all the components of price (including all forms of rent)...
You take out a bunch of rent where it existed and then the stochastic economists look at that as their figure of speech "deflation" ....
Germans can be frustrating... so brilliant in some things, yet some naive in others.
They learn all the whole wrong lessons from the past, they link Hitler and WWII to hyperinflation, ignoring the deflationary bias and war reparations that created Weimar train wreck in the first place.
The whole pro-creditor policy and competitiveness obsession (when you already hold brutal trade surplus) is irritating. And the result is the disparity between the French and German evolution of wages, productivity share, etc. as despised in the article.
When oversees demand disappears you are in big trouble, as it's hapenning now. What's the move of German elites? More craptastic HARTZ reforms? Leep pushing the rest of Europe in the same direction (France, Italy, Spain) as if it solves anything?
Extend and pretend?
There won't be a 'global currency' as there was an euro to solve their distasteful policies in the last two decades this time...
Also I don't understand why other European politicians keep bending to German policy-making. GDP of Italy and Spain combined is higher than Germany, don't even need France.
Should just kick Germany out of the Euro and move forward if the euro project is to keep going. I'm pretty sure consolidated fiscal powers, banking union, and a democratization/political union of institutions would be much easier along the more like-minded southern European countries. Germans are too different to souther Europeans, their deflationary bias will never work in Southern Europe (it will neither in the North, but it always takes longer for them to realise).
Germany can continue with its deflationary bias with other train wrecks like Finland if they wish...
Ignacio,
If we get some interest rate increase started over here, then a lot of rent will be put back into EZ product prices as US savers will have more USD income.... and then their "deflationary bias" will go away for them as the firms will get some ability to raise export prices in USD terms...
then Herr Schauble will see his current nemesis ECB start to soon raise also and get rid of more of their "deflationary bias"...
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