On Mon, May 17, 2010 at 4:16 PM, R P Herrold <herrold@owlriver.com> wrote:
On Mon, 17 May 2010, keith smith wrote:
Maybe..... What if we were to go into deflation?  Wouldn't that help?

herrold, earlier:

This looks like wishful thinking. The outsourcing/offshoring
genie is out of the bottle, and nothing is going to put it back

Deflation relative to what?  Gold? The CHF? The JPY? The EUR? Why should a loss in purchasing power of a unit amount of one currency affect non-lockstep linked currencies at all? Bretton Woods ended those days

Prediction of the path financial markets will take appear to be a multi factor, non-linear problem, with path dependencies.

Anyone saying they _know_ otherwise should be encouraged to play against you in a markets simulation where you run a true random strategy.  If they can consistently articulate a durable strategy that produces above market gains, follow it

What if AZ were the first mover in a economic game where it restricted non-documented guest workers and TX and FL followed suit, but NM and CA did not.  Where will budget and employment crises continue longer?

  I think thats why they made the media $h!tstorm.  It poses a huge threat to them, because the fact is, removing illegals is going to be highly beneficial to our local economy.  It's much better to be employing tax paying American citizens.  Add to that the related problems of crime, drugs, etc. its a clear win for Arizona.  They don't want a domino effect happening.  It's utterly ridiculous to be paying out so much in unemployment while also paying social service subsidies to non-Americans who work the jobs the unemployed would have.  Gov. Arnold's solution to the problem: cut all welfare.  If I were a non-billionaire legal Californian, I would be utterly furious.  California is quickly degrading, hopefully if we keep doing what we've been doing for the past month or so, we'll be ok.  Actually, we'll be a very desirable place to live (this means your house is worth more).

  -jmz




Opinons are cheap; horse races are held regularly to settle differences of opinion as to which of a collection of horses can run the fastest.  One problem with the study of economics, and behavioural economics, is that there is no 'experimental lab'; and 'repeatable starting conditions' repetition of history, to settle arguments like this.


-- Russ herrold
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