Re:Why Falling Prices Are Actually a Really Bad Thing
by jayess on Thursday January 22, 2015 @09:21AM
(#8929217)
The other reason for so much FUD is that the modern economy is entirely based on debt -- personal, corporate, and (especially) government. Therefore central banks needs to keep the bubble growing perpetually so that the debt can be serviced. But it can't continue forever...
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Re:Why Falling Prices Are Actually a Really Bad Thing
by dublinben on Thursday January 22, 2015 @09:28AM
(#8929249)
>But it can't continue forever...
Why not? Malthusian predictions have proven to be wrong so far.
Re:Why Falling Prices Are Actually a Really Bad Thing
by elwin on Thursday January 22, 2015 @09:56AM
(#8929414)
Historically, debt neither increases forever nor collapses catastrophically. Individual sectors collapse, and new ones develop. In the early modern period, governments would simply refuse to repay their debts. Nowadays we have things like stock market crashes and mortgage crises.
Re:Why Falling Prices Are Actually a Really Bad Thing
by debacle on Thursday January 22, 2015 @10:00AM
(#8929436)
We'll really be able to find out in the next 20 years. If it can survive the retirement of the boomer generation and the stagnation of China's economy, it will prove itself as almost entirely durable.
Re:Why Falling Prices Are Actually a Really Bad Thing
by dublinben on Thursday January 22, 2015 @01:52PM
(#8930907)
I think the true test of this system comes sometime in the next century when human population peaks. Expansionist policies assume growth (growing population) and don't handle shrinking or stable populations well.