Bottom line is this:
Those who are saying we wont have high inflation (or even hyperflation), but instead will have deflation...dont get it.
Deflation will not be allowed by banks if it rears its head; the counter being immediate injection (if not over-injection) of money into the system. The massive coordinated QE over the past decades at points of fiscal crises has been shown to have increasingly less 'grunt' each time (i.e. must print/inject exponentially more each successive time to get the same - or even less - results).
Thus, even if deflation comes, the immediate response will be massive QE, and, ultimately, massive inflation (and weaker purchasing power).
Quoting: Anonymous Coward 80429789 If only it were that easy then there would never have been a Great Depression. You reach a point of diminishing returns. They lowered interest rates again and again until 0%. Then they started buying assets and QE. But eventually the system doesn’t work if people and businesses aren’t borrowing.
People don’t understand that inflation is a feature not a bug. Ever since Bretton Woods was conceived, the idea was constant inflation which translates into GDP growth and economic expansion.
But the gig is up. They can’t inflate anymore. Look at the M1 and M2, we are contracting not inflating. All price increases are a result of the attack on petroleum and food. If it wasn’t for that, the deflation would be much more obvious.
But it’s inevitable. The credit bubble has burst. It’s game over. The Great Reset cometh.
You don’t have to believe me - within 6 months it will become self evident as the price of everything craters.
