Yup, economics is a belief system like a religion. Which is way 99% of economists are in outter space with their predictions, they forget the mechanics and think it is strictly about perception. During a deflationary depression people lose their job because the money ceases to exist. This has nothing to do with human behavior. It is a mechanical problem. You better believe it will change human behavior if it happens.
The monetary system is a machine which should analyzed scientifically and not through a economic lens. It’s a machine that is broken beyond repair. The main mechanism for economic growth, credit, is contracting due to impaired balance sheets and too much private debt that can’t be paid back. This can not be fixed with more debt which is their only tool. The underlying structural damage of the banking system is still intact. Nothing has been fixed besides accounting changes and digital money for liquidity.
They only solution by the Fed is more public debt to offset the deflationary effects of the credit collapse.
This requires the world to go along with the plan as our economy shrinks and deficits skyrocket. I don’t believe you can keep buying consumption at interest forever. There is a mathematical endpoint that the world wants to avoid.
Loss of confidence in our financial system and currency will bring hyperinflation.
