Give Us Deflation Now!

Good news! Travel, hotel, restaurants arre cheap; suppliers are eager... you can rent real estate rent month to month, and even get free rent from owners who cannot sell and but are desperate to have the building occupied to avoid the cost of vandalism. And in winter months, who knows what squatters might show up. many of these building were so constructed that they must maintian a constanrt temperatiure or suffer structural damage. Move in, just pay the utilities!

I walked into a RiteAid to buy my wine the other day, and I see entire shelving runs removed. Is see shelves loaded with seasonal items ordered on a gauranteed sale basis, and the rest loaded up with dog food and tupperware, items you can get 180 days to pay, dirt cheap and take up space. The staff is down to what the fire code will permit.

This is smart retailing, but if there is not enough sales to cover the rent, something has to give. Since these Rite-aids are in strip malls, they go to the owner and renegotiate the rent. The smaller tenants have no idea this is happening. If rite-aid pulls out, the other retailers go under because they lose the anchor tenant traffic. Some 3200 martial arts studios went out of biz in May 08 alone. (I beleive these studios trade on 14 year olds fantasy about being a ninja. I think those free style "ultimate fighting" shows on TV are killing enthusiasm for martial arts. When kids see what a somewhat real fight looks like , they retire to their video games.)

Deflation is key to the process of healing this economy. Do your part! Demand a cut in prices. You love that your computers get less and less expensive every year. So it is in a free market.

The fed is supposed to fight deflation, foster just a wee bit of inflation, yet bring "monetary stability" of which a side effect is denying the poor access to the material goods and services the free market has to offer.

Innovators introduce the not very good, the expensive, the hard to get with no choices. Over time with market feedback the innovation gets ever improved, the innovator/entrepreneur does well while doing good. At some point the conservator takes up the item, applies its economy of scales, lowers the price until it is more better cheaper faster, and everyone has access to the material good or service. This is what a free market does. No need for redistribution of wealth to the poor as called for in socialism, no need to concentrating capital in the hands of the elite, which capitalism calls for. Trillions of decisions each day by all players creating a balance with countless adjustments as needs arise.

If an economy is not constantly in deflation (using the incorrect meaning of prices falling) the there is some criminal (in natural law) conspiracy afoot.

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