Deflation is when counterfeited money (deposit liabilities/other side of debt-asset journal entry) are written off. Deflation in a debt-asset based financial s

Deflation is when counterfeited money (deposit liabilities/other side of debt-asset journal entry) are written off. Deflation in a debt-asset based financial system means money is destroyed and becomes more scarce and valuable. Since debts are exponentially increasing cost contracts, when the monetary supply--based on exponentially increasing cost contracts--contracts, you get exponentially increasing appreciation of the currency. Governments are running trillion dollar deficits because they have to because the private sector isn't borrowing enough to expand the debt-assets required to service previous debt contracts that require service in debt contracts. Bitcoin's relative appreciation to fiat currencies and other benchmarks is not driven by a contraction in money supply due to debt-asset write-offs. Bitcoin itself could be declared legal tender and suitable for payment of taxes if a government decided so. Financial crises are ALWAYS about lenders lending money that doesn't exist. The fancy name used to be fractional reserve lending, but since we went to a floating currency system, it's just asset-based lending and no reserves required. Value isn't something anyone can "fix."