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Deflation is ‘Dangerous’?
by Karl Denninger Market-Ticker.org
This sort of twaddle is ridiculous and points to the sort of nonsense that the “media” peddles nowdays.
But the problem with deflation is that when people begin to expect lower prices in the future, they have little incentive to make purchases right now. For instance, unless it was absolutely necessary, why would you buy a new oven today if you thought the price would go down significantly in a month?
And?
Why would you buy a new oven today if there’s nothing wrong with your current one? Who, other than someone interested in both environmental destruction and your personal financial destruction, would suggest that you should buy something that has no current purpose?