Re:US Business Booms and Depressions Since 1775 (1943)
by Etheryte on Tuesday May 21, 2024 @03:34PM
(#40432816)
Saying an economy-wide, central bank-fueled debt bubble followed by debt deflation is bad is very different to saying that deflation is very bad in general. This is simply trying to reframe your argument after the fact. Deflation isn't the cause of economic contraption as you said, it is the result.
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Re:US Business Booms and Depressions Since 1775 (1943)
by KoolKat23 on Tuesday May 21, 2024 @05:33PM
(#40434265)
I'm pointing out the article you referenced is saying its bad, the reason it says is exactly what I'm saying. It's fine short term but it's bad overall.
They're just saying in our debt fueled world, you can't merely print money to get out of jail free in a deflationary scenario as eventually the debt obligation gets too large relative to your shrinking economy size. We live in this world unfortunately where it's bad, in a hypothetical world without all the debt, it's still bad in the long term for the other reasons I've mentioned.