Deflation Unmasked: Why It Can't Exist a Fiat Money System
For all you deflationists out there.. I'm calling you out! Please keep your ignorance to yourself, there is already enough throughout the economy:
Deflation - A drop in consumer prices is the deflationists definition, fair enough. But hold on... Most rely on doctored government statistics, which is just ignorant to say the least. Even so, look at your healthcare and insurance costs thus far this year, up about 18%. Not to mention the inclusion of gas and food argument as this is nonsense. Prices fluctuate, which is part of the market mechanism, so deflation could only occur if the scarcity for these two goods came to an end.. I highly doubt that.
Before fractional reserve banking was abused to the point it is today, the 19th century showed constant deflation as it was was part of a free market economy as that what causes the standards of living to increase. Now for the kicker... The dollar index was at 90 towards the end of 2008, now it is about 76 (and dropping). Deflation manifests itself in rising dollar. I don't understand why that is so hard for people to grasp.
Now to the credit argument...credit and loan losses just don't dissappear into thin air, there is no blackhole for dollars to be sucked into. Deflationists must also assume massive money printing doesn't lead to inflation but rather deflation, but should this be the case then the FED should print money 24/7 forever as it would drive down the cost of living.
I can;t wait for the day the USD is worth nothing and there are still cried of deflation...who's gonna have the last laugh?