Hey, this deflation stream has started flowing as a trickle for a couple of years. Shows how often I look all the way down my subject marks.
But, I'm unaware of any dreaded deflation anywhere. Argentina is having yet another go at money wreckage by dilution. USA is going kaboom to the inflationary exponentially parabolic, asymptotic hyperbole dilution and wastrel profligacy programme. Aotearoa-Zimbabwe is borrowing and spending like there's no tomorrow, which increasingly seems likely. Russia is doing well. England's Great and Glorious Empire with huge surpluses and capital expansion and invention and civilisation development with rock solid money was fading in the early 20th century and lost in the post war socialist bludging welfaring and kleptocratic class.
I'd love to invest in a country with deflation. Or money. Not bitcoin as it's badly designed and can't compete once a sensible system is created. Bitcoin is intrinsically inefficient with "mining" as a means of managing the system with vast energy wastrelism, and huge strings of data that's not relevant to the present, and delays in moving the money from buyer to seller, and insecure because it's just a bunch of numbers hidden on a piece of paper somewhere, that gets lost when the owner dies or their computer gets stolen [which is deflationary so that's something good, in a way, though not really].
Nowhere on Earth is a country running a money system sensibly with constant value. The very best aim [so they say, but they lie] for 2% inflation. That's a huge dilution rate when the vast efficiency increase from the technological revolution combined with huge economies of scale mean a car can be produced now by a bunch of robots at a tiny fraction of the effort it took to make one 50 years ago. That vast efficiency increase has been stolen by the money printers. That vast improvement has concealed their actual dilution and theft of 10% per year.
Even when Made in China cut prices vastly, the printing presses roared and price falls [dishonestly called deflation] were consumed by the profligate possessors of power.
One could argue that the dilution of 10% per year is a royalty on intellectual property. But if Qualcomm had charged 10% royalty, people would have lost their minds, foaming at the mouth and demanding legal attacks on the company. Even 2.5% royalty brought attacks around the world and those royalties last for only 20 years, not permanently as in government confiscation.
Deflation remains like the Loch Ness monster = still not discovered. Big Ben Bernanke was right that his helicopters could sprinkle money everywhere. And so they have done. Hundreds of $billions at a time, and that's just in Aotearoa-Zimbabwe. USA starts at $1 trillion now. $Quadrillions are not discussed yet, but as in Zimbabwe, there will soon be $Quadrillion greenbacks = assuming they haven't gone digital before then.
Mqurice |
