Its my Birthday!
Yes folks its my birthday and I feel blessed. I still have my job, my family, my friends, my things, and most of my health. Overall I can't really complain. But I, like many other people in their 20s can't help but feel a little apprehensive as I tick one year closer to the big "30". Now I know what some of the older Fools are saying, "oh please theres nothing big about 30". But when you are in your 20s, 30 is big. To me you make your most important life decisions in your twenties. Also, your 20s represent the last decade of true youth. In your thirties you are expected to be mature. In your thirties you are beginning to experience the benefits (or consequences) of the decisions you made in your twenties.
Anyway I digress.
Since its my birthday I think I should be able to rant.
I crack up everytime I hear the deflation argument while theres tons of data to the contrary. Explain to me how we have deflation when gas just went up 25 cents a gallon in less than a week. Most of my monthly expenses have gone up. Seems to me the only thing deflating is my purchasing power. My pay has remained stagnant. So the next person that wants to argue deflation, maybe I should have them buy me gas for a month. At least that will help me offset all these other increased monthly expenses.
I stand by my argument that we will have stagflation the near term until Bernanke raises interest rates (which wont be anytime soon). In the meantime the economy will continue to drag on. And yes retailers are going to slash prices because they need to entice people to buy. But if the increased commodity prices begin to make their way into peoples basic expenses again (think 2008) then all the price slashing in the world will not help retailers stay in the black.