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Search interest in the term “inflation” is so far 50% higher this May than it has been in any other month since Google began tracking query data nearly two decades ago:

Nothing to see here. It hasn’t anything to do with ordinary people seeing consumer prices going up in their everyday lives, no siree!

 
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  1. Even back in 1980, in a high inflationary environment and before Volker started jacking up interest rates, one could still earn a decent amount on cash. Now, there’s nothing and inflation is cranking up – I guess you invest in dividend paying stocks and hope for the best – no more safe haven.

    • Replies: @DanHessinMD
    @usNthem

    "Even back in 1980, in a high inflationary environment and before Volker started jacking up interest rates, one could still earn a decent amount on cash. Now, there’s nothing and inflation is cranking up – I guess you invest in dividend paying stocks and hope for the best – no more safe haven."

    Great point.

    The average dividend yield in the S&P 500 is 2%. This is less than inflation, but it is something. Unfortunately if assets give you a return merely in line with inflation, you pay taxes as if those are profits.

    Thus inflation is desirable for the government in two ways. The first way of course is that the government can inflate away it debts. But the second way, not as well appreciated, is that the government can earn tax revenues on phantom gains that are really just inflationary increases in asset prices. In a situation like today's, where government debt is very high and tax revenue is too low, the urge for the government to inflate is very strong.

    The answer to this is to hold assets for decades and decades. When your primary income goes away -- then you can sell the assets and face a much lower tax rate.

    You can also invest in things like kids and the education of said kids.

  2. Curious that ‘economists’ posit that deflation is economically ‘dangerous’ because people will refuse to buy today knowing it will be cheaper to buy tomorrow yet that same rational price based response is absent when the reality of inflation appears.

    People do not ‘hoard’ gasoline or toilet paper because prices may go up they hoard in response to scarcity, a phenomenon more associated with inflation. That is the price goes up because demand exceeds supply. Inflation only becomes ‘real’ to people when it moves from financial asset prices into the world of food, fuel and other must haves.

    • Replies: @Rooster11
    @UNIT472

    Has there ever been a case of real world deflation to back up the claims of these economists? Also, is there such a thing as hyper-deflation? I’d be interested to know if either existed.

    With deflation, I just don’t see things in a deflationary cycle getting cheaper and cheaper where people don’t buy because tomorrow they could get it cheaper. If that were the case, then why do people buy stocks when they’re on a down trend? Isn’t that a sort of deflation? Why buy a stock as it’s going down since it’ll be cheaper tomorrow; or so the theory goes.

    Replies: @V. K. Ovelund, @Jay Fink, @Bill, @Audacious Epigone

  3. Interesting times ahead as tens of millions who experienced a temporary and totally false sense of prosperity as they burned their stimmy checks on consumer goods are faced with reality when they decide to go shopping for the latest fashions and find they cannot afford to replace what they previously purchased.

    The Dems understand this and are feverishly trying to brand everything as “infrastructure” in a bid to keep the cash flowing so voters don’t experience this hangover…they may even be successful for a time but as the saying goes, if something cannot go on forever, it won’t. Knowing this, an intelligent right would start laying the groundwork now for the politics that are still several election cycles away…but today’s GOP is incapable of that.

    • Agree: Mark G.
  4. A Reality Fact:

    Nobody knows for certain what comes next- more inflation, deflation, disinflation, hyperinflation, stagflation, good times, or whatever.

    Put Your Money Where Your Mouth Is?

    And anybody who “knows for sure” that across the board inflation [ie a continued decrease in the general purchasing power of the $US] will happen, should have no trouble putting ALL of their life savings into assets that historically have increased in value during that loss of across the board purchasing power, eg gold, silver, collectibles etc. After all, they “know for sure” that across the board inflation is either here now, or is coming soon, right?

    But in my experience, very few are willing to do that [ie put ALL of their life savings into assets that historically have increased in value during that loss of across the board purchasing power], – a sure sign that , because they have , in reality, continued to “hedge their bets” , they really are not so sure about their “know for sure” proclamations.

    See: “The World’s Best Kept Investment Secret”: http://onebornfreesfinancialsafetyreports.blogspot.com/2019/07/the-worlds-best-kept-investment-secret.html

    Regards, onebornfree

  5. That is quite the break out after 17 years of stability. It is interesting that there was not more of a bump in 2008-2009 when the money printing cranked up.
    https://www.statista.com/statistics/187867/public-debt-of-the-united-states-since-1990/

    • Agree: Audacious Epigone
    • Replies: @UNIT472
    @res

    Inflation wasn't a problem during the GFC because asset prices were crashing . Housing, oil and stock market valuations were destroying dollars faster than the Fed could print them.

    We don't have that problem ( so far ) today so its inexplicable why Powell is inflating the money supply even as housing, commodities and stock markets continue to soar.

    Replies: @V. K. Ovelund, @Audacious Epigone

    , @Daniel H
    @res


    That is quite the break out after 17 years of stability.
     
    There has not been stability over the past 17 (or whatever years). Inflation has been roaring, evident to anybody who wishes to see. The inflationary impulse went toward hard assets: stocks, bonds, real estate, etc. It's been here all along.

    Replies: @res

  6. @UNIT472
    Curious that 'economists' posit that deflation is economically 'dangerous' because people will refuse to buy today knowing it will be cheaper to buy tomorrow yet that same rational price based response is absent when the reality of inflation appears.

    People do not 'hoard' gasoline or toilet paper because prices may go up they hoard in response to scarcity, a phenomenon more associated with inflation. That is the price goes up because demand exceeds supply. Inflation only becomes 'real' to people when it moves from financial asset prices into the world of food, fuel and other must haves.

    Replies: @Rooster11

    Has there ever been a case of real world deflation to back up the claims of these economists? Also, is there such a thing as hyper-deflation? I’d be interested to know if either existed.

    With deflation, I just don’t see things in a deflationary cycle getting cheaper and cheaper where people don’t buy because tomorrow they could get it cheaper. If that were the case, then why do people buy stocks when they’re on a down trend? Isn’t that a sort of deflation? Why buy a stock as it’s going down since it’ll be cheaper tomorrow; or so the theory goes.

    • Replies: @V. K. Ovelund
    @Rooster11


    Has there ever been a case of real world deflation to back up the claims of these economists? Also, is there such a thing as hyper-deflation? I’d be interested to know if either existed.

    With deflation, I just don’t see things in a deflationary cycle getting cheaper and cheaper where people don’t buy because tomorrow they could get it cheaper.
     
    So many lies are afoot, I would hardly blame you if you disbelieved me. However, about 1931, the phenomenon you describe occurred in the United States. Because it occurred in the United States, the Fed was from 1933 given the duty to keep it from occurring again.

    I am unaware of a hyper-deflation.

    Replies: @Audacious Epigone

    , @Jay Fink
    @Rooster11

    There was deflation in the housing market after the 2008 recession. Of course the housing bubble is what triggered that recession in the first place.

    , @Bill
    @Rooster11

    There was a general deflation in the US during the 19th Century. As best we know, prices were lower in 1899 than they were in 1800, overall. There were ups and downs along the way (including a substantial inflation around the time of the Civil War), but overall that century had a deflation. Gold bugs tend to look back on the 19th C with some fondness for this reason.

    https://www.stlouisfed.org/publications/regional-economist/second-quarter-2017/a-short-history-of-prices-inflation-since-founding-of-us#fig1

    I don't know of any hyper-deflation. In the US, a big deflation is around 4% in one year. There have only been a few of those.

    , @Audacious Epigone
    @Rooster11

    Why do people ever buy new phones, computers, gaming systems, or any other electronic products? Prices go down and quality goes up on those things as a matter of course. These goods have existed in an unrelenting 'deflationary' (in the vernacular sense of the word) for decades, yet people buy buy buy them. Deflation is a good thing.

  7. @res
    That is quite the break out after 17 years of stability. It is interesting that there was not more of a bump in 2008-2009 when the money printing cranked up.
    https://www.statista.com/statistics/187867/public-debt-of-the-united-states-since-1990/

    Replies: @UNIT472, @Daniel H

    Inflation wasn’t a problem during the GFC because asset prices were crashing . Housing, oil and stock market valuations were destroying dollars faster than the Fed could print them.

    We don’t have that problem ( so far ) today so its inexplicable why Powell is inflating the money supply even as housing, commodities and stock markets continue to soar.

    • Replies: @V. K. Ovelund
    @UNIT472


    Housing, oil and stock market valuations were destroying dollars ...
     
    I do not understand how those things destroy dollars. I understand how repayment of a loan destroys dollars, but do not understand the things you list. Would you (or another reader) explain?

    Replies: @DanHessinMD

    , @Audacious Epigone
    @UNIT472

    It's explicable--if money creation stops, the prices of assets will crash. That's politically suicidal. "Growth" in the American economy, such as it is, is predicated almost entirely on perpetually loose monetary policy paired with debt-financed perpetual financial stimulus.

  8. Creating excess new money is the cause of inflation. This is not debatable at all. Postulations about deflation right now are fantasy.

    Since there is going to be a big inflation around the world in the immediate future look on the bright side. Inflation is only really damaging to wage slaves. If you work for yourself you can adjust as you go along and might even come out ahead

    I have run a business through two big inflations. One of them of thirteen digit magnitude. It was no big sweat. Difficult times majorly favour well run businesses.

    There are lots of things that hold value better than money.

    Inflation gives a big discount, at the governments expense, to people who pay taxes since the taxes are usually paid in arrears

    Interest rates tend to spike so being debt free really pays dividends

    Opportunities for speculation multiply

    • Replies: @Rooster11
    @Leander Starr

    Inflation is also disastrous to retirees on fixed income. I think many boomers are going to have a rude awakening in the coming years.

  9. Central banker dirtbags such as Fed Chair Jay Powell don’t like WAGE INFLATION.

    Scumbag whore central banker shysters like Jay Powell use mass legal immigration and mass illegal immigration to keep wages low in extremely accommodative monetary policy environments such as we have now.

    Evil Republican Party scum such as Tom Emmer and Kevin McCarthy and Mitch McConnell and Rick Scott do the bidding of the globalizer plutocrats and the bankers and the greedy, money-grubbing scum in the CHEAP LABOR FACTION by pushing mass legal immigration and mass illegal immigration.

    Tom Emmer and Rick Scott are the rancid corrupt bagmen who will distribute all the donor loot to the vile whores running in GOP congressional primaries. Tom Emmer and Rick Scott push mass legal immigration and mass illegal immigration and amnesty for illegal alien invaders and REFUGEE OVERLOAD and ASYLUM SEEKER INUNDATION.

    I wrote this in February of 2017:

    Central bankers do not want wage inflation. Central bankers want the supply of labor to be plentiful in order to keep wages from rising. The Governor of the Bank of England admitted that wages are kept low by the increased supply of labor provided by mass immigration. This stuff ain’t rocket science.

    We do not have capitalism in the United States, nor anywhere else on the globe. We have central banker shysterism. The main feature of central banker shysterism is a debt-based fiat currency system.

    Central bankers in Sweden, to name a nation in the news, have been playing around with negative interest rates. The privately-controlled Federal Reserve Bank only went so far as a ZERO interest rate policy. Negative interest rates was thought too much for the average American to accept or understand.

    The Fed’s ZERO interest rate policy is made possible by the ZEROTH AMENDMENT. Mass immigration reduces wage inflation. The Fed is able to conjure trillions of dollars out of thin air with few worries about those conjured dollars causing wage inflation because mass immigration keeps the supply of labor high and wages low.

    https://www.unz.com/isteve/why-are-labor-shortages-a-thing-but-not-pay-shortages/#comment-1778978

    Tweet from 2015:

  10. ASSET BUBBLE PRICE INFLATION

    PRICE DISCOVERY HAS BEEN DISCONTINUED

    CONSUMER GOODS INFLATION ACROSS THE NATION

    HOUSING COST INFLATION IS HINDERING AFFORDABLE FAMILY FORMATION

    I wrote this in May of 2019:

    Mass immigration and monetary extremism are combining to massively increase the cost of housing in many European Christian nations.

    The answer to mass immigration increasing the cost of housing is to immediately implement a mass deportation contingency plan that would remove between 30 and 60 million foreigners and their spawn from the United States.

    The answer to monetary extremism increasing the cost of housing is to immediately raise the federal funds rate to 20 percent. The Federal Reserve Bank raised the federal funds rate to 20 percent in 1981 and the United States of America must do it again. Call it another instance of baby boomer nostalgia.

    The asset bubble in real estate — commercial and residential — was partly caused by cheap money and low or zero interest rates by the privately-controlled Federal Reserve Bank. The student loan debt bomb that is about to detonate in the middle of politics in the USA is another instance of the Federal Reserve Bank inflating an asset bubble. My modest proposal for that is a student loan debt jubilee combined with paying back every penny ever paid in student loans with 6 percent interest returned to the borrowers.

    Cheap rent and cheap land and cheap homes and AFFORDABLE FAMILY FORMATION must once again be the birthright of all European Christian Americans.

    God Bless The USA And To Hell With The Money-Grubbing Globalizers And Plutocrats And Bankers!

    https://www.unz.com/isteve/urban-campers/#comment-3219276

  11. @Leander Starr
    Creating excess new money is the cause of inflation. This is not debatable at all. Postulations about deflation right now are fantasy.

    Since there is going to be a big inflation around the world in the immediate future look on the bright side. Inflation is only really damaging to wage slaves. If you work for yourself you can adjust as you go along and might even come out ahead

    I have run a business through two big inflations. One of them of thirteen digit magnitude. It was no big sweat. Difficult times majorly favour well run businesses.

    There are lots of things that hold value better than money.

    Inflation gives a big discount, at the governments expense, to people who pay taxes since the taxes are usually paid in arrears

    Interest rates tend to spike so being debt free really pays dividends

    Opportunities for speculation multiply

    Replies: @Rooster11

    Inflation is also disastrous to retirees on fixed income. I think many boomers are going to have a rude awakening in the coming years.

  12. he Manheim Used Vehicle Value Index is a little known but good indicator of inflation. Used car prices have surged over the past year.

  13. A123 says:

    Inflation is spiking: (1)

      

    The best answer would be MAGA re-industrialization. This would push up both employment and wages blunting the impact of inflation.

    Alas, the Harris/Biden regime will not create jobs. Their SJW Globalist “infrastructure” bill proposes less than 30% of the total on construction projects, such as roads, bridges, & ports. (2)

    PEACE 😇
    __________

    (1) http://www.shadowstats.com/alternate_data/inflation-charts/

    (2) https://www.breitbart.com/politics/2021/03/30/report-only-650-billion-of-joe-bidens-2-25-trillion-infrastructure-bill-funds-roads-and-bridges/

  14. @usNthem
    Even back in 1980, in a high inflationary environment and before Volker started jacking up interest rates, one could still earn a decent amount on cash. Now, there’s nothing and inflation is cranking up - I guess you invest in dividend paying stocks and hope for the best - no more safe haven.

    Replies: @DanHessinMD

    “Even back in 1980, in a high inflationary environment and before Volker started jacking up interest rates, one could still earn a decent amount on cash. Now, there’s nothing and inflation is cranking up – I guess you invest in dividend paying stocks and hope for the best – no more safe haven.”

    Great point.

    The average dividend yield in the S&P 500 is 2%. This is less than inflation, but it is something. Unfortunately if assets give you a return merely in line with inflation, you pay taxes as if those are profits.

    Thus inflation is desirable for the government in two ways. The first way of course is that the government can inflate away it debts. But the second way, not as well appreciated, is that the government can earn tax revenues on phantom gains that are really just inflationary increases in asset prices. In a situation like today’s, where government debt is very high and tax revenue is too low, the urge for the government to inflate is very strong.

    The answer to this is to hold assets for decades and decades. When your primary income goes away — then you can sell the assets and face a much lower tax rate.

    You can also invest in things like kids and the education of said kids.

    • Agree: usNthem
  15. @Rooster11
    @UNIT472

    Has there ever been a case of real world deflation to back up the claims of these economists? Also, is there such a thing as hyper-deflation? I’d be interested to know if either existed.

    With deflation, I just don’t see things in a deflationary cycle getting cheaper and cheaper where people don’t buy because tomorrow they could get it cheaper. If that were the case, then why do people buy stocks when they’re on a down trend? Isn’t that a sort of deflation? Why buy a stock as it’s going down since it’ll be cheaper tomorrow; or so the theory goes.

    Replies: @V. K. Ovelund, @Jay Fink, @Bill, @Audacious Epigone

    Has there ever been a case of real world deflation to back up the claims of these economists? Also, is there such a thing as hyper-deflation? I’d be interested to know if either existed.

    With deflation, I just don’t see things in a deflationary cycle getting cheaper and cheaper where people don’t buy because tomorrow they could get it cheaper.

    So many lies are afoot, I would hardly blame you if you disbelieved me. However, about 1931, the phenomenon you describe occurred in the United States. Because it occurred in the United States, the Fed was from 1933 given the duty to keep it from occurring again.

    I am unaware of a hyper-deflation.

    • LOL: Rosie
    • Replies: @Audacious Epigone
    @V. K. Ovelund

    There was price deflation in much of the second half of the 19th century as well.

  16. @UNIT472
    @res

    Inflation wasn't a problem during the GFC because asset prices were crashing . Housing, oil and stock market valuations were destroying dollars faster than the Fed could print them.

    We don't have that problem ( so far ) today so its inexplicable why Powell is inflating the money supply even as housing, commodities and stock markets continue to soar.

    Replies: @V. K. Ovelund, @Audacious Epigone

    Housing, oil and stock market valuations were destroying dollars …

    I do not understand how those things destroy dollars. I understand how repayment of a loan destroys dollars, but do not understand the things you list. Would you (or another reader) explain?

    • Replies: @DanHessinMD
    @V. K. Ovelund

    There are two direct ways.

    When stocks crash, margin loans are called and those loans are cancelled. I think in the world of big finance, leverage is very common, even more than at the retail level.

    When house prices crash, many people walk away from upside-down mortgages.

    So I guess this is an extension the same principle of how loan repayment destroys dollars because these are instances of loans ending. (The other one, cheap oil? Beats me.)

    Replies: @UNIT472

  17. @Rooster11
    @UNIT472

    Has there ever been a case of real world deflation to back up the claims of these economists? Also, is there such a thing as hyper-deflation? I’d be interested to know if either existed.

    With deflation, I just don’t see things in a deflationary cycle getting cheaper and cheaper where people don’t buy because tomorrow they could get it cheaper. If that were the case, then why do people buy stocks when they’re on a down trend? Isn’t that a sort of deflation? Why buy a stock as it’s going down since it’ll be cheaper tomorrow; or so the theory goes.

    Replies: @V. K. Ovelund, @Jay Fink, @Bill, @Audacious Epigone

    There was deflation in the housing market after the 2008 recession. Of course the housing bubble is what triggered that recession in the first place.

  18. @V. K. Ovelund
    @UNIT472


    Housing, oil and stock market valuations were destroying dollars ...
     
    I do not understand how those things destroy dollars. I understand how repayment of a loan destroys dollars, but do not understand the things you list. Would you (or another reader) explain?

    Replies: @DanHessinMD

    There are two direct ways.

    When stocks crash, margin loans are called and those loans are cancelled. I think in the world of big finance, leverage is very common, even more than at the retail level.

    When house prices crash, many people walk away from upside-down mortgages.

    So I guess this is an extension the same principle of how loan repayment destroys dollars because these are instances of loans ending. (The other one, cheap oil? Beats me.)

    • Thanks: V. K. Ovelund
    • Replies: @UNIT472
    @DanHessinMD

    When oil fracking companies, e.g, go bankrupt, the loans made to them are written off and this means the banks and other financial institutions that made them have less capital to make loans to others.

  19. @res
    That is quite the break out after 17 years of stability. It is interesting that there was not more of a bump in 2008-2009 when the money printing cranked up.
    https://www.statista.com/statistics/187867/public-debt-of-the-united-states-since-1990/

    Replies: @UNIT472, @Daniel H

    That is quite the break out after 17 years of stability.

    There has not been stability over the past 17 (or whatever years). Inflation has been roaring, evident to anybody who wishes to see. The inflationary impulse went toward hard assets: stocks, bonds, real estate, etc. It’s been here all along.

    • Replies: @res
    @Daniel H

    Sorry I wasn't clear enough. I was referring to the search history. Not inflation itself.

  20. @Daniel H
    @res


    That is quite the break out after 17 years of stability.
     
    There has not been stability over the past 17 (or whatever years). Inflation has been roaring, evident to anybody who wishes to see. The inflationary impulse went toward hard assets: stocks, bonds, real estate, etc. It's been here all along.

    Replies: @res

    Sorry I wasn’t clear enough. I was referring to the search history. Not inflation itself.

  21. @DanHessinMD
    @V. K. Ovelund

    There are two direct ways.

    When stocks crash, margin loans are called and those loans are cancelled. I think in the world of big finance, leverage is very common, even more than at the retail level.

    When house prices crash, many people walk away from upside-down mortgages.

    So I guess this is an extension the same principle of how loan repayment destroys dollars because these are instances of loans ending. (The other one, cheap oil? Beats me.)

    Replies: @UNIT472

    When oil fracking companies, e.g, go bankrupt, the loans made to them are written off and this means the banks and other financial institutions that made them have less capital to make loans to others.

  22. On the topic of inflation, can someone please tell me why this sh!t is allowed.

    https://www.bloomberg.com/news/articles/2021-05-21/mega-landlords-are-snapping-up-zillow-homes-before-the-public-can-see-them

    How bad are things when even Bloomberg is turning populist? I understand libertarianism, and it might even work in small-scale societies where people can’t hide behind the anonymity of the market but can be held accountable by their neighbors, but really this can’t go on.

  23. Inflation and inflation expectations have been in the news a lot lately. I had a telephone call with a friend the other night who is not particularly financially sophisticated, and he asked me about it. This wasn’t due to his personal consumption basket increasing in price, but due to reports in the news.

    The gasoline price is also up, and that’s probably the single prices normies most pay attention to.

  24. Bill says:
    @Rooster11
    @UNIT472

    Has there ever been a case of real world deflation to back up the claims of these economists? Also, is there such a thing as hyper-deflation? I’d be interested to know if either existed.

    With deflation, I just don’t see things in a deflationary cycle getting cheaper and cheaper where people don’t buy because tomorrow they could get it cheaper. If that were the case, then why do people buy stocks when they’re on a down trend? Isn’t that a sort of deflation? Why buy a stock as it’s going down since it’ll be cheaper tomorrow; or so the theory goes.

    Replies: @V. K. Ovelund, @Jay Fink, @Bill, @Audacious Epigone

    There was a general deflation in the US during the 19th Century. As best we know, prices were lower in 1899 than they were in 1800, overall. There were ups and downs along the way (including a substantial inflation around the time of the Civil War), but overall that century had a deflation. Gold bugs tend to look back on the 19th C with some fondness for this reason.

    https://www.stlouisfed.org/publications/regional-economist/second-quarter-2017/a-short-history-of-prices-inflation-since-founding-of-us#fig1

    I don’t know of any hyper-deflation. In the US, a big deflation is around 4% in one year. There have only been a few of those.

  25. Deflation would be the default in any peaceful civilization where bankers aren’t skimming off the cream through fiscal shenanigans.

  26. @Rooster11
    @UNIT472

    Has there ever been a case of real world deflation to back up the claims of these economists? Also, is there such a thing as hyper-deflation? I’d be interested to know if either existed.

    With deflation, I just don’t see things in a deflationary cycle getting cheaper and cheaper where people don’t buy because tomorrow they could get it cheaper. If that were the case, then why do people buy stocks when they’re on a down trend? Isn’t that a sort of deflation? Why buy a stock as it’s going down since it’ll be cheaper tomorrow; or so the theory goes.

    Replies: @V. K. Ovelund, @Jay Fink, @Bill, @Audacious Epigone

    Why do people ever buy new phones, computers, gaming systems, or any other electronic products? Prices go down and quality goes up on those things as a matter of course. These goods have existed in an unrelenting ‘deflationary’ (in the vernacular sense of the word) for decades, yet people buy buy buy them. Deflation is a good thing.

  27. @UNIT472
    @res

    Inflation wasn't a problem during the GFC because asset prices were crashing . Housing, oil and stock market valuations were destroying dollars faster than the Fed could print them.

    We don't have that problem ( so far ) today so its inexplicable why Powell is inflating the money supply even as housing, commodities and stock markets continue to soar.

    Replies: @V. K. Ovelund, @Audacious Epigone

    It’s explicable–if money creation stops, the prices of assets will crash. That’s politically suicidal. “Growth” in the American economy, such as it is, is predicated almost entirely on perpetually loose monetary policy paired with debt-financed perpetual financial stimulus.

  28. @V. K. Ovelund
    @Rooster11


    Has there ever been a case of real world deflation to back up the claims of these economists? Also, is there such a thing as hyper-deflation? I’d be interested to know if either existed.

    With deflation, I just don’t see things in a deflationary cycle getting cheaper and cheaper where people don’t buy because tomorrow they could get it cheaper.
     
    So many lies are afoot, I would hardly blame you if you disbelieved me. However, about 1931, the phenomenon you describe occurred in the United States. Because it occurred in the United States, the Fed was from 1933 given the duty to keep it from occurring again.

    I am unaware of a hyper-deflation.

    Replies: @Audacious Epigone

    There was price deflation in much of the second half of the 19th century as well.

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