![The germans had all the problems we have right now, back in the 20s in Weimar Germany. They found the solution. Back then. [746x3546 - 1.95MB]](https://pic8.co/sh/v1oaaa.png){kind=link}
We arguably have out of control deflation which is arguably worse than out of control inflation. The constant increases in money supply, which these Covid lockdowns are only accelerating, are a finger in the dyke approach to these deflationary pressures. The ECB hasn’t turned off the money printers since 2015, the US keeps pretending to be stopping but is now into their fourth QE program. Despite this both regions struggle to even reach 2% inflation consistently. Either the deflationary pressures rescind, in which case the long term money supply expansions which have already occurred could easily spark hyperinflation, or the money supply expansions stop being effective, deflation kicks in and production grinds to a halt.
Honestly I haven't even done research into deflation, but isn't it a good thing?
No! It’s a disaster! Why would you buy something today that will be cheaper in six months? Why buy it in six months if it’ll be cheaper in a year? So demand side crashes for all but essential purchases. And more importantly why produce something today when you don’t know how much what you produce will be worth in six months/a year, but you know it will be worth less? Can today’s cost of production be covered by tomorrow’s sale price?
Deflation causes production to grind to a halt with demand crashing on one side and only downside risk on the supply side. The money machine has been going brrr for the last decade to try and counter this to stop that happening.
I see. But in the end wouldn't this increase the buying power of a single dollar?
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