Deflation, not inflation, is the swine flu that risks infecting the economy; quantitative easing is its Tamiflu.
That is, something we’ve not really tried before, certainly not on this scale, and something which we know to have side effects which may or may not be worse than the original disease we’re trying to treat.
Enjoy it, it’s an experiment.
6 responses so far ↓
1 Ian B // Aug 13, 2009 at 9:12 am
How on Earth, I mean, how for fuck’s sake, I mean how the fucking fuck, did we get to be such an insane civilisation that people can write articles about the terrible danger of goods and services getting cheaper, and be not only taken seriously but actually considered to be stating the reasonable view?
I mean, how the fucking fuckity fuck can the greater mass of humanity actually believe that they will be harmed if prices do not rise every year? What’s next? Tearing out the still beating hearts of sacrificial victims to make the sun rise while shouting “The sun must not fall! It will fall if we do not make it rise!”?
People sit and read this on computers and an internet they can only afford because of deflation, and still they fear it?
Is not Keynes the swine that infected us all?
2 Ed // Aug 13, 2009 at 6:04 pm
I completely agree Ian. The problem is that while
In a deflationary environment, a strong balance sheet, with little debt, is an advantage.
most companies and especially the government are up to their eyeballs in debt.
3 AntiCitizenOne // Aug 13, 2009 at 11:49 pm
Deflation is a risk whereby people make money by just holding onto it and not using it.
It’s a form of rent-seeking.
4 Ian B // Aug 14, 2009 at 4:14 am
AntiCitizenOne-
Keynesianism is nonsense. Sorry, but it just is.
5 Ed // Aug 14, 2009 at 7:35 am
AntiCitizenOne, if deflation is rent-seeking by consumers, then inflation must be rent-seeking by producers.
6 Craig // Mar 14, 2011 at 11:13 pm
Reaganomics is an abject failure! It’s fruit is crime and economic disaster.
Why wouldn’t people admit reaganomics is an abject failure, …like the war on drugs, it has betrayed anyone who put their faith in it.
Because it was never ment to create or maintain stability, security, or Soverignty, Reaganomics is a ponzi scheme.
After 30 years of mismanagement, deregulation, preditory banking, naked short selling, insider trading, money laundering, a few immoral criminals have gotten filthy rich by cheating and stealing from the poor, the sick and the elderly, this is not good economics by any metric.
Leave a Comment