[quote=livinincali][quote=The-Shoveler]Deflation only helps people who have no debt, a constant fixed income (Retired mostly) or a very large bank account.
ie… not the majority of Americans or working people paying off debt.
Most DB pension plans have a fixed inflation adjustment cap (most are 2% some go up to 5%) I have never seen an unlimited one or at 8-10%.

Wages and everything except DB payouts.[/quote]

Why do you assume the powers that be want to help the bulk of Americans paying off debt? Why would you assume that this desired inflation 8-10% is going to show up in wages making debt payments easier? It’s only easier to pay off my debt if my income increases and my daily expenditures don’t increase as much. It might be worse rather than better.

Certainly we may end up in an highly inflationary environment but I certainly don’t think it’s going to be the savior. I think it will actually end up being worse than the deflationary path. In hyper inflation all debts are worthless. In deflation some debts still have value. Pretty much everybody’s retirement depends being able to collect on debts. Most wealth in this country is indeed somebody else’s debt.[/quote]

Agreed. We need wage inflation, not asset price inflation. The first is more likely to benefit Joe Sixpack than the second. Asset price inflation, absent wage inflation, reduces purchasing power for most people. That’s a bad thing.