Excellent, excellent, excellant!!!! I could not have done a better job myself. You are officially a Deflationista Disciple.
One point of contention though. The Fed / Bernanke doesnt really think they can stop the deflationary spiral. Yeah, I know…helicopter ben and all that non-sense. In reality all they are doing is mitigating the damage and slowing the rate of descent so that there is not a large scale systemic meltdown ala the Bear Sterns blow out.
The inflationary mindset, much like the housing price mindset, is so ingrained in the psyche of the masses that it is difficult for most of J6P to understand that rising prices do not necessarily equate with inflation. Unlike many posters I’ve seen who argue that the definition I use is too academic / abstract, I say bullshit. It is what is. It is the lack of consistency in the use of the terms that leads to massive confusion and obfuscation of the economic issues at hand disallowing for clear thinking on a complicated subject matter.
