[quote=CA renter][quote=pri_dk][quote]Funny how people/doctors keep fighting the natural and healing forces of cancer. Best to get it over with quickly. Contrary to popular myth, cancer doesn’t go on forever…as long as the medical caregivers allow it to happen naturally (and quickly!).
Doctors, in their efforts to “fight cancer,” end up making it worse, IMHO.[/quote]
Good point. One more reason to stop donating to Komen.[/quote]
Not a good analogy.
Deflation is healing, not killing. In today’s case (and many instances in the past), it’s a result of too much money being amassed at the top. It’s why you see deflationary events after massive credit expansions and after wealth/income disparities reach historical highs.
Deflation happens when all the money and credit available to the bottom of the economic pyramid gets spent — and this money invariably ends up at the top of the pyramid. The foundation begins to crumble, and deflation results. Deflation is when the money/purchasing power begins to move back down toward the bottom of the pyramid. It is essential to go through this process in order to build a stronger foundation for the next economic cycle.
The only other possible way to get out of this is to literally print money **and give it to the bottom of the pyramid, with no debt offset** so they can purge their debts. Of course, this has the added effect of cost inflation, and this runs counter to what we’d be trying to fix in the first place.
Deflation is the best cure for those at the bottom of the pyramid. Those at the top suffer because asset prices fall (wages fall, but tend to fall more slowly, effectively increasing purchsing power even though workers make less nominally). Since those at the top are the ones who suffer most during deflation, they spread the myth that deflation is bad and never-ending. This is not necessarily true. Deflation equalizes things, and that’s why those at the top (who influence not only policy, but the messages put out by the MSM, “think tanks,” and universities) will do everything in their power to prevent it.[/quote]
Deflation functions as a mandatory interest rate supplement to anyone in debt.
It makes the dollars you use to repay more expensive.
Think of it this way:
If you have a 5% loan and 5% deflation, you have an effective 10% interest rate.
It only benefits those who save.
And that pretty much excludes the US.
Now I suppose this is the part where you explain to me how economics/politics/property “should” work.
