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Germany just reported its first DEFLATION in 22 years... Almost like we're sitting the top of an unstable equilibrium that is only getting taller.

• stuffthatmatter 17y ago
  Yup...Germany has savings, while we have a negative savings rate (think it was -5% in 2008....might be better now)
  • scotch_drinker 17y ago
    The US Savings Rate briefly fell into negative territory in Q2/Q3 of 2005. It has been positive in all other quarters. In 2008 it was well above 2%. People quote the low US savings rate like it's a doomsday scenario but in reality, it's a rational decision when your interest rates have been below 5% for a decade or more. Saving money when you make 1% on it is actually losing money due to inflation. Why the Germans save as much as they do with such a low interest rate is a topic for another discussion. http://www.bea.gov/briefrm/saving.htm http://www.bea.gov/briefrm/saving.htm