What do you think about deflation?

azprof......some thoughts come to mind.....at the end of the Clinton years, the Fed was quite concerned about deflation (as Greenspan so testified).....budget defecits were low, there was abundant cash to even apply to the national debt.....not a good thing for folks who make their  living via usury......war destroys abundance and the war in Iraq has so far sucked up, what, a trillion dollars so far......but even that was not enough and here we are facing deflation again......the Saudi government recently made available to it's banking institutions about 1.5 billion dollars to be loaned INTEREST FREE to needy citizens..hmmmm!....would you agree that the government is trying to drive interest rates down by flooding (abundance) the credit markets with money (so far without success).....the complexities of the situation remind me of the story of the Gordian Knot....I can tell it if need be.....anyway appreciate the conversation, continue if you please

definition of deflation:  mild depression. 

I am very optimistic that the economy will improve some time next year.  It all went downhill practically overnight and everyone is scared.   The market meltdown caught us by surprise and now we are all in the mess, however, I feel it is short term. 

Everyone is waiting to see what the new government will do in 2009.  The low gas prices, lower prices for scrap copper, aluminum, brass, and other items are down but will bounce back.

The World is watching the U.S.A. closely.  They do not want to spin their wheels until we take care of our financial problems.  I feel that the World governments, collectively, should do more to help us during our financial crisis as our government helps them in their time of need.

Finally, I feel that our countries are going through more of a restructuring period rather than a depression mild or not.  Everyone I know is just hunkering down and watching their pennies as they are afraid to spend at the moment.  In my opinion, "the Media" have done a fine job in scaring us off and making us feel stressed out about it. 

I pulled back on spending all together, simply because I am saving money. Why make payments on a new car when I can buy a old late 80s early 90s car for under $2000 and own it the same day. Why buy a new $800 flat panel tv when I can go to a yard sale and get a older tube tv for under $50. Why pay almost $1000 for a laptop when I can get one at a pawn shop for $300. It's common sense to save money and be stingy on everything.

It's just the natural adjustment.....following all the wealth the rich and greedy milked us out of.....the gluttony encouraged over spending and inflated the value of everything....now we are seeing the adjustment to a more realistic price for goods and services...and it will go up again...count on it....meanwhile things will change....business's.... will die...our choices will be limited to those that survive....L:arge corps (with their tax advantages, subsidies)...will be your choices....independents (business owners)...will be crippled by forced higher wages(minimum wage hikes...increase all wages not just the lowest...and we are only raising it to force the large corps(like Walmart) to pay their people more(so they can make millions))...and forced health care....We won't  be able to survive....we can't compete with the giant corps....meaning you will have three places to shop....say good by to diversity ....once your competition is gone (like how Walmart) forces independents out of business....they raise thier prices....love they way this capitilism works....show me again where we benifit by allowing business's(corps) grow so large tthat we can't let them die...so we protect bad business examples at the expense of good ones

Another thing.....I have never seen anyone comment on what the effect of the last minimum wage increase did to the economy (jobs lost..less hiring..making your work force do more (understaffed)....raising other wages....your cook or mid level employees can't be making the same as the dishwasher....and then....who really pays....the customer....ya....business's have to raise their prices to offset......I see nothing about this...nothing....it is like it didn't matter....on top of that Obama wants to raise it to $10....for kids in high school washing dishes....Look...minimum wage is a TRAINING wage...after you are trained...if you are good....you will be raised...if not you are being screwed by your employer...and you should seek employment else where....minimum wage hikes are used to force (THE LARGE CORPS) to treat their employees better....but when the point is to make as much money as you greeedily can....they won't do it unless forced....problem is ...a law for the minority (large cheating greeedy corps) makes all of us pay....great system and soulution...