Deflation is ahead of us.
who said it is an age of inflation, no way! It will be the age of the deflation.
Some believe huge public debts of the world will raise interest rates for rending and which devaluate currencies, and it cause world class inflation.
but is it true?
As long as world Central Banks and Federal Researve Banks keep liquidating capital and purchesing government bonds, the interest rates never go up.
Then,
As long as consumers spend less than they have earned and they save more, the liquidated cash never go into the market.
FRBs maintain the interest rate low and people buy only what they truely need. That means more money for individual companies to spend for innovation.
Innovation, Innovation, Innovation.
When people neglected from using credit card and living only on their own earnings, financial corporations have to find a way to rend, invest their funds and generate cash.
Enterpretainers and competitive companies are their targets.
This over-liquidated fund will help people to continute their research and corporation to achieve innovations, which improve productivity drastically.
Even if oil prices has gone up to above $300 per barrel, if a company innovates a car which runs more than 100km/L petrol, there will be less demand for the oil. when cars are able to rund more than before, people are able to minimize the cost of transportation. Therefore, retail shops are able to save their sale-costs and they can reduces the price.
Exactlly, when a maker improves their productivity through inovations and they can manufacture more goods for less energy, they are able to reduce their sale-price.
All they need is capital/cash to invest for the innovation. The FBRs can offer it.
in the 21st century, corporations get more funds for innovation for less costs, and this easy-loaning will improve productivity. This would reduce the prices and cause the deflation.
It is the times of the deflation. Save your money in a bank, which offers you more than 6% interest per a year.
who said it is an age of inflation, no way! It will be the age of the deflation.
Some believe huge public debts of the world will raise interest rates for rending and which devaluate currencies, and it cause world class inflation.
but is it true?
As long as world Central Banks and Federal Researve Banks keep liquidating capital and purchesing government bonds, the interest rates never go up.
Then,
As long as consumers spend less than they have earned and they save more, the liquidated cash never go into the market.
FRBs maintain the interest rate low and people buy only what they truely need. That means more money for individual companies to spend for innovation.
Innovation, Innovation, Innovation.
When people neglected from using credit card and living only on their own earnings, financial corporations have to find a way to rend, invest their funds and generate cash.
Enterpretainers and competitive companies are their targets.
This over-liquidated fund will help people to continute their research and corporation to achieve innovations, which improve productivity drastically.
Even if oil prices has gone up to above $300 per barrel, if a company innovates a car which runs more than 100km/L petrol, there will be less demand for the oil. when cars are able to rund more than before, people are able to minimize the cost of transportation. Therefore, retail shops are able to save their sale-costs and they can reduces the price.
Exactlly, when a maker improves their productivity through inovations and they can manufacture more goods for less energy, they are able to reduce their sale-price.
All they need is capital/cash to invest for the innovation. The FBRs can offer it.
in the 21st century, corporations get more funds for innovation for less costs, and this easy-loaning will improve productivity. This would reduce the prices and cause the deflation.
It is the times of the deflation. Save your money in a bank, which offers you more than 6% interest per a year.