If we are headed for systemic long-term deflation, can anyone explain to me how it plays out.
Every level of government in virtually every country is holding unsustainable levels of debt. Along with most consumers in most countries, and with businesses of all types massively in debt.
If the natural deflationary economic forces are permitted to play out as they should, the only possible outcome I can see is complete economic collapse. Apocalyptic crash and burn. Which won't be good for the careers of politicians and bankers, probably won't even be good for their survival.
The only way they know of to avoid that outcome is more of the same policies that got us here in the first place, massive money printing, easy credit, artificially low interest rates, deficit spending, more consumer debt, more public and private debt. All of which are inflationary.
Personally, I would bet on politicians and Central bankers pushing the easy button every time. They'll talk the talk, but when push comes to shove they cannot possibly afford to walk the walk.
With the entire world in the same boat, it is mutually assured destruction if one of the big Domino's falls. Under that scenario, it seems we can't allow one country to either fail, or do the right thing and get off the inflationary treadmill.
And add to that wars and geopolitics and energy shortages and labor shortages and demographics, and chronic malinvestment in all the wrong sectors and industries, and it looks like inflation is here to stay for a long time to come.
Or can anyone come up with a deflationary scenario that isn't apocalyptic?
Every level of government in virtually every country is holding unsustainable levels of debt. Along with most consumers in most countries, and with businesses of all types massively in debt.
If the natural deflationary economic forces are permitted to play out as they should, the only possible outcome I can see is complete economic collapse. Apocalyptic crash and burn. Which won't be good for the careers of politicians and bankers, probably won't even be good for their survival.
The only way they know of to avoid that outcome is more of the same policies that got us here in the first place, massive money printing, easy credit, artificially low interest rates, deficit spending, more consumer debt, more public and private debt. All of which are inflationary.
Personally, I would bet on politicians and Central bankers pushing the easy button every time. They'll talk the talk, but when push comes to shove they cannot possibly afford to walk the walk.
With the entire world in the same boat, it is mutually assured destruction if one of the big Domino's falls. Under that scenario, it seems we can't allow one country to either fail, or do the right thing and get off the inflationary treadmill.
And add to that wars and geopolitics and energy shortages and labor shortages and demographics, and chronic malinvestment in all the wrong sectors and industries, and it looks like inflation is here to stay for a long time to come.
Or can anyone come up with a deflationary scenario that isn't apocalyptic?
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