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I've read it before my prior response and it ends off with: "A little bit of deflation is a product of, and good for, economic growth. But, in the case of an e
by KoolKat23 2y ago
I've read it before my prior response and it ends off with:
"A little bit of deflation is a product of, and good for, economic growth. But, in the case of an economy-wide, central bank-fueled debt bubble followed by debt deflation when the bubble bursts, rapidly falling prices can go hand-in-hand with a financial crisis and recession."
This is what I'm saying.
- Etheryte 2y agoSaying an economy-wide, central bank-fueled debt bubble followed by debt deflation is bad is very different to saying that deflation is very bad in general. This is simply trying to reframe your argument after the fact. Deflation isn't the cause of economic contraption as you said, it is the result.
- KoolKat23 2y agoI'm pointing out the article you referenced is saying its bad, the reason it says is exactly what I'm saying. It's fine short term but it's bad overall. They're just saying in our debt fueled world, you can't merely print money to get out of jail free in a deflationary scenario as eventually the debt obligation gets too large relative to your shrinking economy size. We live in this world unfortunately where it's bad, in a hypothetical world without all the debt, it's still bad in the long term for the other reasons I've mentioned.