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[OP]
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Sep 16, 2012
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Mississauga

Deflation

I found this article interesting, read it yesterday with the holiday season in full swing and many retailers discounting goods, do you think that there is a chance of deflation occurring in Canada's economy ?
http://www.theglobeandmail.com/report-o ... e15758683/
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Deal Guru
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Feb 23, 2008
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Brampton
I think the dropping Canadian dollar should help inflate prices.
Lets Go Blue Jays!!!
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Nov 27, 2006
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Toronto
new propaganda??


I dont see lower prices on most goods. Same price as things have always beeen.
Banned
Nov 27, 2006
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Toronto
also why did TTC fare go up... metro pass costs 133.50 in the new year.. $5 a month raise. Thats like 3% aint it???? Oh wait.............. thats deflation.. I guess so because our fking ttc is deflating it's service.
[OP]
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Sep 16, 2012
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I would not say propaganda, go to a mall and see the deals many stores are offering these days on products and the razor thin profits that many big box stores are now expecting, its the reality of increased competition and not enough variety in the type of shopping experience you get.
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Nov 27, 2006
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olek86 wrote: I would not say propaganda, go to a mall and see the deals many stores are offering these days on products and the razor thin profits that many big box stores are now expecting, its the reality of increased competition and not enough variety in the type of shopping experience you get.
lol............. wow razor thin profits on iphones and ipads...................... except gasoline went up how much? hydro went up how much? How much did your cellphone go up??? Thats deflationary pressure,..... right/////////////////////////////////

Also, wtf? Compeitition does not mean deflation.
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May 28, 2009
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The problem for all the central banks (US, Europe, Canada etc) is there is deflation or more exactly lack of inflation (since prices are not actually going down) in areas that they want to pump and high inflation in other areas that they dont want to pump.

lack of inflation in real investment in the private sector, hiring, wages
high inflation on food, gas, commodities, house prices etc

That is why people say QE is not working and is doing more harm than good. And the response from the central banks has been we just need to print moar!! to see the desired effects on the stuff we want to pump. And there lies the comparison with the lunatic (ie central bank) that keeps doing the same thing over and over and expecting a different result.

the talk about lack of inflation is the justification for all the stimulus going on for 5 years now : ZIRP, endless QE etc

one of the effects and goals of these stimulus measures is to debase your currency so as to boost your exports. This is what is called the currency war : everyone racing to debase their currency faster than the others so as to gain an export advantage.

Canada has been losing that war and now the Bank of Canada is signalling they want to debase some more. Question is can they debase faster than the others.
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Feb 15, 2008
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Calgary
Yeah significant periods of stagnant/weak CPI ahead of us. Especially from the housing market now in the process of falling fairly broadly across Canada. And record levels of personal indebtedness which will be very difficult to expand on account of credit-worthiness.

I predicted such in the various housing threads. I took a lot of flack for it at the time, for suggesting that the whole idea of BoC rate hikes was nonsense. But now such seems to have been proven correct, and most of the talk in the media and amongst financial professionals is now for BoC policy rate cuts.

I believe the CAD$ is on its way up soon, personally, in response to this deflation and an associated credit contraction. So wouldn't worry too much about the foreign imported goods being much of a factor. USD$ strength is temporary at best.
TodayHello wrote: ...The Banks are smarter than you - they have floors full of people whose job it is to read Mark77 posts...
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Jul 21, 2011
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qewcool wrote: lack of inflation in real investment in the private sector, hiring, wages
high inflation on food, gas, commodities, house prices etc

That is why people say QE is not working and is doing more harm than good.
The stock market and the RE market is up > 40% since the recession, so does QE work? Yes, it does but only to those who hold real assets. If you don't own anything, tough luck.
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Feb 15, 2008
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zilber wrote: The stock market and the RE market is up > 40% since the recession, so does QE work? Yes, it does but only to those who hold real assets. If you don't own anything, tough luck.
Ummm, most of the stocks in the so-called "stock market" that have gone up significantly really aren't 'real assets' at all, but are merely fluff companies, with minimal earnings.

And even then, those stock owners haven't really fully recovered from the collapse, once you adjust for inflation. So I wouldn't exactly run around saying that things have been good for them.
TodayHello wrote: ...The Banks are smarter than you - they have floors full of people whose job it is to read Mark77 posts...
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Feb 15, 2013
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Mark77 wrote: Yeah significant periods of stagnant/weak CPI ahead of us. Especially from the housing market now in the process of falling fairly broadly across Canada.
Hey OP check this out!
Rickson9 wrote: Actually your post said:
You said I've provided. You haven't. The original quote still holds true. That is:
^ This.
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Jun 28, 2007
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olek86 wrote: I found this article interesting, read it yesterday with the holiday season in full swing and many retailers discounting goods, do you think that there is a chance of deflation occurring in Canada's economy ?
http://www.theglobeandmail.com/report-o ... e15758683/
Deflation is falling prices. We don't have that - we have prices that aren't growing that fast - disinflation. Will that turn into deflation? Unlikely, especially since a lower C$ means imported prices (most consumer goods) will eventually become more expensive. In fact, a lower C$ is a big reason why the Bank of Canada is unlikely to cut interest rates even though a certain poster has gone on ad-naseum about "looming" rate cuts over the past several years.
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Jun 28, 2007
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Mark77 wrote:
I believe the CAD$ is on its way up soon, personally, in response to this deflation and an associated credit contraction. So wouldn't worry too much about the foreign imported goods being much of a factor. USD$ strength is temporary at best.
..quoted for posterity - especially since the loonie is trading at just above 93 US cents today - I believe it was about a year ago when the loonie was around par that you "predicted" an even stronger currency. I might be wrong but when par goes to 93 US cents - that's a weaker currency no?
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Jan 11, 2004
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gomyone wrote: ..quoted for posterity - especially since the loonie is trading at just above 93 US cents today - I believe it was about a year ago when the loonie was around par that you "predicted" an even stronger currency. I might be wrong but when par goes to 93 US cents - that's a weaker currency no?
You are wrong and I'll tell you why.

<insert 3 paragraph reverse logic opinion>

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