We’ve been inflating for 60 years and the biggest bubble in history pops and people scream “oh no INFLATION!” lol

The system is inherently inflationary, it is what it wants to do. Just look at the value of the dollar over time.

Now the biggest influence on stopping deflation was, not printing, but convincing people that we were going to inflate. Because the collectives habits are about the strongest force out there.

People stop taking out debt and withdraw money from the market the economy deflates to the size of a pea overnight. Bernake could drop pallets of hundreds in downtown LA and it would not matter a lick if people did not play along.

Now behind the perception we have the reality of a supremely deflationary dynamic. The default mechanics apply “natural” deflationary pressure. Now granted, the system has been short circuited – private mortgage market replaced with government, massive government spending, accounting tricks(which is essentially pretending value is there when it’s not), etc… But still we are in a deflationary cycle – meaning without massive support *systemically* and perception wise a deflationary cycle would ensue. There are few things that could trigger a deflationary collapse , oil spike, new war, national default, etc.. Anything that would panic the herd. And I believe their are enough black swans out there to do it at some point.