Keith Graham
Broker echo $page_id; ?>
Tel: 416.712.7908
Office: 416.883.0892
Fax: 416.883.0894
E: info@thetorontocondos.com
Welcome To Cityplace from Luna Assignments on Vimeo.
It pretty much verifies everything I said. Which makes me feel better because even
i got confused.
To fully understand the way inflation and deflation affect prices, we need to differentiate between assets, such as stocks and real estate, and consumer goods, such as shoes and potato chips. If we measure prices in gold, as we did during the 1930′s, both asset and consumer goods prices will fall, with the former falling faster than the latter. So in that sense the deflationist are correct. However, in terms of today’s paper dollars, this outcome is completely impossible. During deflation, money gains value, so prices naturally fall as fewer monetary units are required to buy a given quantity of goods. In the coming deflation, real money (gold) (real estate) will gain considerable value, so prices will therefore fall sharply in gold terms. Paper dollars however, which have no intrinsic value at all, will lose value, not only as the Fed increases their supply, but as global demand for the currency implodes.








