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To: long-gone who wrote (28314)2/15/1999 4:15:00 PM
From: Hawkmoon  Read Replies (1) | Respond to of 116764
 
It could be the combination of the sudden drop in population, in some locals while others have had little or no population growth coupled with a notable increase in productivity.

Richard,

Not to be harsh, but where did you pull that logic out of? Your arse??

Most of the undeveloped world continues to see high population growth. In many cultures a large family is see as a symbol of influence and security (expanding your genetic prodigy as well as creating a large family to take care of you in retirement).

But deflation is not due to a slump in population. It is partially due to a decrease in consumption combined with overproduction of goods that force a divergence in the supply demand curve. Supply-side economics gone awry.

It appears developing nations become more efficient at producing goods than they have at providing the sound financial infrastructures needed to sustain growth and demand.

The solution? Fix the financial systems to where nations can recommence growth under a sound credit system, or contract production of goods to bring pricing power back (with correlating profitability).

But I have to admit, you posed an "interesting", if only completely fallacious and irrelevant argument.

Regards,

Ron