Sammy Jankis
Was it me?
Wow ditzie... you actually got him to respond with an answer that has already been given to you 50 posts ago. I already stated that decreasing pricing due to greater production efficiencies is fine. I already stated that both inflation and deflation can lead to recessions.
The point ditzie... is which is worse? Which is harder to control? Deflation is worse because of the nature of our economy. Period. If you have debt, deflation that is not caused by production efficiencies is going to kill you. Because as you figured out, the value of the dollar increases. If the value of your debt is increasing is that good or bad ditzie?
When you have layoffs the likes of which we are seeing, you get a drop off in demand, which leads to more layoffs, which leads to lower demand. When prices drop due weakening demand.... that is bad ditzie. Because then you have higher unemployment and typically lower wages for those still working (see UAW) at a time when debt is increasing in value.
Are you ever going to address this ditzie? Do you actually believe that we aren't in this cycle already?
This is the reason that deflation is worse. This is why we do everything we can to avoid it. Has there ever been a depression caused by inflation ditzie?
hint... the answer is no.... they are caused by severe deflation. It is the worst of environments.
Trying to play your idiotic word games with deflation and a deflationary spiral... a term I brought to your attention and you pretend was a part of your original argument.... is simply childish and moronic.
Plus, you will always defend inflation because you and your corrupt friends like printing money for yourselves.