{"id":11189,"date":"2010-02-05T11:35:52","date_gmt":"2010-02-05T18:35:52","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=11189"},"modified":"2010-02-05T11:35:52","modified_gmt":"2010-02-05T18:35:52","slug":"deflationary-or-inflationary-laying-economists-end-to-end","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/11189\/deflationary-or-inflationary-laying-economists-end-to-end\/","title":{"rendered":"Deflationary Or Inflationary? Laying Economists End To End"},"content":{"rendered":"

The last half of the title came to me as I recalled one of Johnny Carson’s most memorable lines. He was talking about how economists are supposed to be the smartest kids in the room, but at the same time can’t agree with each other what day it is. He said, “If we laid all the economists end to end around the world…it would be a good idea.”<\/em> (Insert rimshot here.) <\/p>\n

There are two basic schools of economic theory — Those who believe economies can be centrally controlled, engineered if you will — And those who believe economies should be as free as prudently possible, with regulation in place to abort fraud etc., i.e. they avoid central control as much as possible. <\/p>\n

The engineers think they know better what ‘needs’ to be done, while consciously eschewing human responsive behavior as part of their equation. They believe if you raise\/lower taxes the result will be arithmetic in nature, and that you and I won’t modify our behavior in either circumstance. That’s surely an oversimplification, but accurate.<\/p>\n

The free market crowd says if you raise taxes you slow economies down, and if taxes are lowered more jobs are created due to more capital venturing into the market because of the lowered cost (taxes). <\/p>\n

Then there are the folks who think they’re smarter than both schools. They try to blend what they think are the best ideas from both theories. Good luck. \ud83d\ude42<\/p>\n

We’ve all seen the argument between the two camps rage since we learned to spell economics. <\/p>\n

I bring this up only to illustrate the current example of how the smart kids in at least one of the schools just doesn’t get it. I’ll leave it to you to decide which school that might be. <\/p>\n

The argument today is, Are we in a deflationary cycle or are we about to enter what could be a hyper-inflationary cycle?<\/strong> <\/p>\n

I lean toward deflation. Every single time an economy, any economy in the last eight centuries, has gone through a massive deleveraging, it’s been deflationary in nature. There have been no exceptions found in the research, Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The last half of the title came to me as I recalled one of Johnny Carson’s most memorable lines. He was talking about how economists are supposed to be the smartest kids in the room, but at the same time can’t agree with each other what day it is. He said, “If we laid all […]<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7,2],"tags":[],"class_list":{"0":"post-11189","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-enduring-interest","7":"category-general","9":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":14896,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/14896\/greco-roman-rejection-of-rotarian-socialism-is-the-cure-for-what-ails-the-united-states\/","url_meta":{"origin":11189,"position":0},"title":"Greco-Roman Rejection of Rotarian Socialism Is The Cure For What Ails the United States","author":"Brian Brady","date":"August 8, 2011","format":false,"excerpt":"Europe has tried all sorts of Statist approaches to the PIIGS problems.\u00a0 Today, Europeans are considering \"liberalization\": As the European financial crisis moves into its next phase, there\u2019s a new word to learn: \u201cliberalization,\u201d and it's likely to be even more unpopular than \u201causterity.\u201d Leaders in Europe are promising to\u2026","rel":"","context":"In "Disintermediation"","block_context":{"text":"Disintermediation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/disintermediation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2009,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2009\/economists-and-other-humans-don%e2%80%99t-always-see-eye-to-eye\/","url_meta":{"origin":11189,"position":1},"title":"ECONOMISTS and other humans don\u2019t always see eye to eye","author":"Russell Shaw","date":"October 6, 2007","format":false,"excerpt":"ECONOMISTS and other humans don\u2019t always see eye to eye. \u201cEconomists tend to think people are crazy because they won\u2019t sell their houses for less than they paid for them \u2014 and people think economists are crazy for thinking things exactly like that,\u201d said Professor Christopher Mayer.","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"money darts at target","src":"https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2007\/10\/money%20darts%20at%20target.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":796,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/796\/lereah-must-die-he-is-a-clown\/","url_meta":{"origin":11189,"position":2},"title":"Lereah Must Die! He is a Clown","author":"Russell Shaw","date":"December 21, 2006","format":false,"excerpt":"Talk is cheap. Supply exceeds Demand. Not His Favorite Clown What follows are a few \"Economist Jokes\". Not wanting to shock anyone but all of these were written and were being told when David Lereah was still in grade school. Here is a news flash - people who are finding\u2026","rel":"","context":"In "Casual Friday"","block_context":{"text":"Casual Friday","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/casual-friday\/"},"img":{"alt_text":"Lereah","src":"https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2006\/12\/Lereah.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":1154,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1154\/macro-economists-have-successfully-predicted-nine-out-of-the-last-five-recessions\/","url_meta":{"origin":11189,"position":3},"title":"“Macro-economists have successfully predicted nine out of the last five recessions”","author":"Greg Swann","date":"March 15, 2007","format":false,"excerpt":"In celebration of Hillary Clinton's breathtaking reification of the economics of real estate, I thought I'd share with you \"Mankiw's Ten Principles of Economics, Translated.\" Hat tip: Donald Luskin. Technorati Tags: real estate, real estate marketing","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":507,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/507\/arizona-economy-get-over-housing-bubble-economists-say-growth-remains-strong\/","url_meta":{"origin":11189,"position":4},"title":"Arizona economy: “Get over housing bubble, economists say, growth remains strong”","author":"Greg Swann","date":"October 4, 2006","format":false,"excerpt":"I won't have September's numbers until tomorrow, but the news is not good for bubbleheads -- which is to say that the news is not bad for everyone else. Meanwhile, there's this from The Business Journal of Phoenix:Some of Arizona's leading economists believe the housing slowdown is a short-lived bump\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2112,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2112\/hr-3915-is-dangerous-for-the-american-homeowner\/","url_meta":{"origin":11189,"position":5},"title":"HR 3915 Is Dangerous","author":"Brian Brady","date":"October 28, 2007","format":false,"excerpt":"HR 3915, The Mortgage Reform and Anti-Predatory Lending Act of 2007, was introduced by Barney Frank, (D-MA). Congressman Frank is also the Chairman of the House Committee on Financial Services. I outlined the key components of the bill with a link to the text here. The danger behind this bill\u2026","rel":"","context":"In "General"","block_context":{"text":"General","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/general\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/11189","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=11189"}],"version-history":[{"count":1,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/11189\/revisions"}],"predecessor-version":[{"id":11190,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/11189\/revisions\/11190"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=11189"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=11189"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=11189"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}