SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: forceOfHabit who wrote (100636)1/13/2009 4:44:45 PM
From: orkrious  Read Replies (1) | Respond to of 110194
 
It seems to me that in claiming falling prices are the cure for deflation the author completely neglects the economic feedback effects implicit in the phrase "deflationary spiral".

I'm going to guess that it's the author's assertion that it's not a deflationary spiral that results. The system eventually reaches equilibrium, something that doesn't happen with money printing.



To: forceOfHabit who wrote (100636)1/13/2009 11:58:47 PM
From: Oblomov5 Recommendations  Read Replies (1) | Respond to of 110194
 
Being of the Austrian school, the author would say that despite the vernacular usage of the term "deflation", falling prices are only a symptom of deflation, not the deflation (i.e. credit deflation) itself.

So, trying to pump more money into the system in order to prevent prices from falling is treating a symptom, not the underlying disease. Like much else, only time can rectify the excesses that arose during the bubble.


HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News