[quote=briansd1][quote=sdduuuude]
Not so sure it staves it off. Possible that QE1 staves it off, and maybe even QE2, but the more you go into debt, the higher your interest payments. Get the interest too high and the likelihood of the deflationary collapse increases.
[/quote]
I’m confused how more QE (money printing) would cause a deflationary collape.
Dispite QE1 and QE2, interest rates are now lower. Quantitive Easing actually avoided a deflationary spiral.
[quote=sdduuuude]
I’m not a fan of either the deflationary spiral or hyper-inflation theories but I do think deflation has a bit part to play yet and could come back more than once in the next few years.
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If deflation “has a big part to play and could come back more than once in the next few years,” then more QE is the way to address that deflation.
