Deflation Fears

Governments all over the world are terrified of nagative inflashen which of course is deflation of the eccomonmy. Every year countries aim for about 3% inflation. This is enough to make things that are static slowly deteriorate. Any thing or even service being rendered on a regular basis must increase in price slightly to stay at the same value. This motivates people to invest in new things and keep their money moving around.

Basically, whomever is printing the money, read 'the government, makes 3% on everything that costs money just bye the fact that the value of that item will depreciat by at least inflation and cause movement in the economy.

Deflation causes a spiral. People make less. What they get is worth more to them. What they get must last longer, thus less people are needed to make said things or performing said services. Thus, you end up with people making even less and what they have already is now worth even more to them so they hang on to things even longer and wait longer to spend a dime, look harder for deals, give up on many things all together.

If I get a 3% raise in one of these typical years, that means that I'm staying in the same spot. If I get a 6% drop, which happened to me a couple years ago, I'm really down close to 9% over the year. Those numbers are not exact. Someone can give the exact amounts.

2009 is poised to have high inflation. So high, that the 'experts' may change how they measure inflation just to make the numbers go down a bit better. No one I know is getting a raise unless they switch jobs. The price of everything is going up. This summer, OPEC is going to put the screws to Western Civilization, I just feel it. It is what I would do if I were them. It is the perfect time for an oil embargo. Kick us when we are down and agree to call it off for concessions like help with nuclear power and stock in all those electric car companies.