Saturday, November 23, 2013

Deflationary Death Spiral sighting

Something for Spaniards to keep in mind next time they come across one of their elite corps of economics journalists spewing out the standard version. 

What with CPI printing negative in October, we though that it would be in the public interest to assist the beleaguered citizens of Spain in taking full advantage of the Deflationary Death Spiral* into the vortex of which their beloved patria is about to descend. The following list of October's bad actors provides a story you can tell yourself as you - homeland be damned - hoard your money and lasciviously lust over those deals you're going to score as Armageddon arrives.

CPI Category
Oct CPI
Rationale for delaying spending in anticipation of lower prices
Electronics
-8.1
I’m lining up at the Apple Store waiting for lower prices.
Communications
-7.5
Let's talk next month. It'll be cheaper.
Vehicles
-3.3
This one's got potential (too bad sales are up 34% YoY)
Vehicle parts & repairs
-2.3
Spreadsheet > calculate fuel savings on 3 cylinders vs cost of repair.
Electricity
-2
Watch this week's Walking Dead.... next week.
Household Appliances
-1.7
No problem. I like sushi.
Hospital services
-1.2
They're offering a special on biopsies in August.
Personal articles
-1.2
In the meantime, just tear up a few rags.
Household textiles
-1.1
(see previous)
Sports & recreation goods
-0.9
Trending > air football
Home rent
-0.5
If we don't pay, the landlord'll charge us less next month.
Home repairs
-0.4
Leak? No problem. Cut the mains.
Sports & recreation services
-0.4
I'll exercise twice as much next month (multipurpose rationalization)
Hotels
-0.2
I love Benidorm in January.
Personal goods & services
-0.1
Let hair grow. Call myself an indignao. (Won't work for Luís de Guindos.)
Medicines
0
I'll hedge my insulin habit with a Viagra short.
Financial services
0
Cash is king, anyway.

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2 comments:

Pili said...

Así pues:

Han subido la electricidad un 8% esta segunda vez.
El efectivo se acaba
Si no pagamos el alquiler o la hipoteca, nos echan a la calle bajo un puente.
Las comunicaciones en España son las más caras de Europa.
El coche ¿anda?, ya se llevará al taller otro dia. Para qué calcular lo que no se dispone?
En el hospital cada vez dan más tarde las horas, señal de que tienen mucho trabajo. Cada vez más personas se dan de alta en las mútuas.
etc. etc. etc.
Vamos bien, vamos bien.
Viva los brotes verdes.

Charles Butler said...

Thanks for your contribution. I'll pass your message on to the relevant department.