whighlander
Senior Member
- Joined
- Aug 14, 2006
- Messages
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Re: The Boston Arch (Aquarium parking garage)
Guys -- as one who is often [fairly] accused of running well away from the topic-- let's move the discussion of hyper inflation and deflation to its own thread under design a Better Boston
That said --the problem with the Weimar solution was that eventually it let to Adolf -- once you sufficiently debase the currency -- you are asking for total societal disfunction as someone will eventually be in possession of something real and the other fellow will be stuck with a wagon load of useless paper.
Deflation is also a bad process since it typically leads to a protracted depression in the economy as there is nothing valuable for collateral for a loan -- why should I loan you money when what you offer will be worth--less in five years -- But it does cure bubbles and other distortions of the economy
if Weimar Germany was the text book of Hyperinflation in a developed country then the "Japan that can say No" -- buyer of Rockefeller Center which led to the decade of stagnation is a modern textbook example of deflation. Before the collapse the real estate under the Imperial Palace in Tokyo was valued in excess of the State of California -- something was clearly out of whack -- but nothing could stop it -- until it did stop -- then the entire economy contracted or slid sideways for more than a decade
Guys -- as one who is often [fairly] accused of running well away from the topic-- let's move the discussion of hyper inflation and deflation to its own thread under design a Better Boston
That said --the problem with the Weimar solution was that eventually it let to Adolf -- once you sufficiently debase the currency -- you are asking for total societal disfunction as someone will eventually be in possession of something real and the other fellow will be stuck with a wagon load of useless paper.
Deflation is also a bad process since it typically leads to a protracted depression in the economy as there is nothing valuable for collateral for a loan -- why should I loan you money when what you offer will be worth--less in five years -- But it does cure bubbles and other distortions of the economy
if Weimar Germany was the text book of Hyperinflation in a developed country then the "Japan that can say No" -- buyer of Rockefeller Center which led to the decade of stagnation is a modern textbook example of deflation. Before the collapse the real estate under the Imperial Palace in Tokyo was valued in excess of the State of California -- something was clearly out of whack -- but nothing could stop it -- until it did stop -- then the entire economy contracted or slid sideways for more than a decade