kewp, I think you’re right. With asset price inflation, borrowers (=majority of voting population) do very well, regardless of deflation or inflation. That’s what we’ve had for years. With asset price deflation, borrowers can only do well if they can default, or inflate away their debts, with inflation here defined using consumer prices and wages.
When projecting the future, always be aware of what works best for the majority of voters. Politicians may be corrupt or statesmanlike, but few politicians are going to do anything to stand between the majority of voters and their dreams of wealth without saving*.
*Saving defined as earned income less consumption spending, excluding capital gains/losses.
