[quote=FlyerInHi][quote=harvey] Of course deflation and high interest rates are contradictory, but you jump back and forth demanding both from the “powers that be.”[/quote]
CAr, Harvey is right on there.[/quote]
Read my post just above this, Brian. Then tell me that he is right.
What matters is the REAL interest rates. In deflationary times, real interest rates are almost always positive. In inflationary times, they can be negative, like they are now. And you have to look at the prices of everything, including asset prices. And you can’t start from an artificially elevated base (stopping the deflation of a credit bubble via central bank manipulations still leaves excess credit in the system, and prices will be artificially inflated as a result, even if prices are lower than they were just prior to the deflationary event).
