"BIG MONEY owns the debt and the government, so they won't let it be inflated away. BIG MONEY also owns the fed and the banks - and they ALONE control money and credit. serious inflation is contrary to their interests and they won't let it happen, imho."
Well, imho, deflation will cause more debt to go unpaid and the value of "BIG MONEY" holdings will drop further. On the other hand, inflation will cause a lot debt to be paid off earlier - because present psychology is in that direction -, then a bit later rising interest rates will simply allow "BIG MONEY" to redeploy.
Not once since the Great Depression has monetary stimulus failed to advance inflation. During the Depression, as noted earlier, there were structural differences that, when compared to present circumstances, point us away from deflation.
The other day I bought a box of crackers at the super market. I did not notice until I opened it that for the second time in as many years, the box was smaller, though the price was about the same if not higher. Also, I opened a box of trail snack bars recently purchased at Costco. Same price, but the product was about 20 percent smaller than my last purchase. My utility bills keep going up, costs for clothing, food, and on and on. Where is deflation except in housing prices? Are rents falling? Are consumer rates for installment loans going down? |
