Recessionomics - update 6. The end of 'Recessionomics' blog posts, price deflation on LCD's and economic collapse.

With the global recession ending (on short term fiscal and monetary stimulus measures) and GDP being at the best of times dubious measure of economic output. Morbius glass Recessionomics may not have the same ring to it when previously we were all sitting in 'official' negative growth. So this blog post may be the last under 'recessionomics' (unless a 'double' dip happens, that being a W - more likely an M), although the next title maybe called tumult-onomics (as in tumultuous economics here after) at some point.

To celebrate the possible end of 'recessionomics' blog posts on morbius glass I feel it is fitting to explain the grossly hysterical observation of deflation (Keynesian); which unfortunately is so out of date that their (interventionist economics) deflation models overly exaggerates deflation pressures by adding technological deflation which is normal price deflation on newer technology replacing older technology. The miscalculation? Well just refer to the the amount of liquidity sloshing around (this can be seen in recent stock rallies) is very good indication of over use of monetary stimulus and/or 0% interest rates. So when they (governments and central banks) try and underpin prices, including those that will always fall (technology), they create the only scenario that is left; inflation based economic collapse (don't worry the Doom'ers are starting to get press now)

A good example is flat screen LCD's, (remember 6 years back when they were $7,000 to $10,000 for a plasma flat-screen!!!). The average new price is between $2,000 and $3,000, but once a new LCD hit's the market for that price it quickly drops.

refer to the price graph for a Sony Bravia KDL46XBR9 46" LCD HDTV :



So natural deflation occurs in the 21st century on the back of technology, in the old days say 1930's when it was old analogue phone , it held it's price better and deflation concerns were based on wage and general price deflation.

But we are gonna have a lot more price inflation just refer to the USD and oil charts (I'll post them later) thanks to a fuck up with deflation modeling.