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Deflation? Are you even understanding what’s going on right now? With 200+ banks insolvent basically? Hyper inflation is the risk right now. That it total anarc

• JumpCrisscross 4y ago
  > inflation is the risk right now When deposits are destroyed, that causes deflation. Deposits aren’t being destroyed. But wealth, in the form of banks’ non-deposit liabilities, is. The Fed would welcome such deflation (though not its cause). But that doesn’t seem to be likely. That said, nothing which is happening right now is inflationary other than, potentially, the Fed pausing its rate increases.
  • postingawayonhn 4y ago
    I'd argue deposits are being destroyed as banks no longer have the assets to make depositors whole. Of course central banks seem to be adopting the position that no depositors will lose any money and everyone will be bailed out.
    • JumpCrisscross 4y ago
      > central banks seem to be adopting the position that no depositors will lose any money and everyone will be bailed out Not the Fed per se. And that’s the point. Quantity of deposits in the system is preserved. Wealth down. Fed support of banks up. How this balances is uncertain, but nothing is unilaterally inflationary.