We've all heard about the fall of such basket case currencies like the English Pound, Hungarian Florint and Icelandic Flounder and of course modest improvement in the dollar vs Euro rates.

And air fares seem to be plummeting with the price of oil (though the number of seats is declining as well so...)

But Deflation may also make some countries cheaper - like Germany - The NYTimes recently said that German wholesale prices had declined an astounding 8% - serious deflation that is often a dread thing and prices could decline more

And Spain, by most accounts the worst off economically country in Europe besides perhaps Hungary (Iceland don't count) also fears deflation.

And even Britain may soon follow the deflationary cycle - some folks predict they may have to borrow once again, like in the 70s i believe, from the International Monetary Fund just to prop up their tattered economy - much like third world countries often do.

So europe or at least some countries like Germany may be cheaper than you think - even though tourist prices can be surprisingly immune from ordinary economic factors IME

Trust me - we've seen no signs of deflation here. Except in second hand car prices. And houses of course. So if you want to buy a car cheap, or a house not quite so cheap.
But otherwise prices on imported goods are generally rising steeply due to crappy exchange rates and dodgy economies.

Isn't the US also suffering from deflation? In which case it kind of cancels out any European deflation.

Ireland is the true basket case of Europe at the moment.

Nope U.S. in stats just released i think had an inflation rate of 0.2%

but fears of deflation are there but most think here - wags that Europe is going to be hit harder even and perhaps their reluctance to open the coffers will lower demand and prices.

Our stimulus plan - good or bad - is putting $1 trillion new dollars into the economy that should be spent and thus maybe even cause a tad of inflation.

John Maynard Keynes was so passe not long ago amongst economists but now many say his expansionary views in times of recession don't go far enough.

There is no deflation and there won't be one. A few consumer things like cars became cheaper. I recently had inquired for a new car. 35% off listed price is qute normal right now.
That's good. Prices for using public transport are up by about 8% this year and are constanltly rising as are energy costs except for gas. You can count the number of products that became cheaper on one hand.

>is putting $1 trillion new dollars into the economy
Pal, where did they get that amount of money to spend, did they raise your taxes??? Or did the chinese give them the money???

I mean, I could spend $1.000.000.000.000 too, would you just transfer those to my bank account, please?? ;-)

they basically printed it - or in effect - just released money the Treasury had somehow and yes in the future it will be paid for by Dutch and Chinese investors - Hetismij already probably is stuffed with T-Bills in her portfolio.

I have a horrible feeling, can it be the Americans spent my savings on plasma TVs??? If I want to get them from the bank are they still there or are all banks broke and just be kept alive, by money from the government.

Why did you spend my savings on plasma TVs and junk houses??
I mean, can I at least send you the repo-man?

Germans won't buy if they have money

Americans buy without any money

Are they not raising the money by selling UK gov't gilts? (uk govt bonds)? Thats why the fixed income market in the UK is down today after the budget announcements, and why the GBP is down because the gov't is having to raise money through the gilt sales...

they are also raising the money by raising the tax rate of the richest to 50%, one of the tops in the industrialized world but still a fragment of the 90% in the days of Old Labour in the pre-Iron Lady era.