Re: Request for help

Posted by Loyd Smith On 2009/4/4 1:20:48

"Experts are saying the present deflation period may last for years. It is possible that if you were ever forced to sell you would get half what it was worth before the deflation set in."-----

Although no one living since the mid 1930s has ever experienced deflation, it's a funny economic principle. Your money buys more. That means that in deflationary times, even though the actual dollar amount that you might get for your car may be less than the dollar amount that you paid for it - the deflated dollars that you get for it will buy, usually, about the same quality and quantity of product that you bought with the inflated ones. If deflation should happen, you'd be little worse off and, perhaps, even come out a little ahead.

As The United States' trade imbalance continues to grow, domestic productivity of material goods continues to decline as more and more domestic industry is driven overseas to avoid rising taxes and growing bureaucratic harassment, trillions more dollars in unsupported (by anything other than smoke and mirrors) are created and put into circulation to, "fix," our current economic crises - deflation is just about as likely to occur for the foreseeable future as is the sun rising in the west tomorrow morning. Housing prices will undoubtedly continue to adjust back to near (but not quite) reality even in our entirely credit based, "Alice in Wonderland," economy but, deflation? Nothing in reality based historical economic principles indicates that our generation or the five or six that come after it will EVER see deflation. To deflate currency must be based upon something of quantifiable positive (rather than negative) value. In reality, since we went off the gold standard in the early 1930s and since our domestic production of goods in worldwide demand fell below what we, ourselves, consume - ours hasn't been.

I'd go ahead and buy the cars (both of 'em) if I had the money in hand. Hell, possession will be the law if the balloon goes up and the nation and everyone who lives in it have been, in the most literal sense of the word, bankrupt and living on unsupported credit at least since the early 1980s. Why worry now? If you have the means, enjoy a Packard. There are few things as worthwhile in the world today.