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Non-Tech : Deflation -- Ignore unavailable to you. Want to Upgrade?


To: Maurice Winn who wrote (513)12/11/2009 6:37:39 AM
From: Snowshoe  Read Replies (1) | Respond to of 621
 
From your first link, "money" is funny stuff...

Inflation / Deflation and Credit Bubble
tradingstocks.net

Almost all of the money supply in the economy is in terms of bank credit. This monetary system is prone to a deflationary crash. There is a herd effect in the population. People borrow and spend alltogether and they stop borrowing alltogether. This creates cycles like kontradiev wave. The herd effect causes great booms and great busts. This is explained in Conquer the Crash.