Quote from denner:
Deflation = asset prices re-adjusting to new realities. Meanwhile, the public sector continues to spend and increase salaries while the private sector sucks wind.
So, Kassz, should we destroy our currency, emburden all future generations with untold trillions in debt, so that we can "prevent" asset prices from finding a true equilibrium or that bogeyman "deflation" that it seems a particular group of individuals fear more than death itself.
Ah here we go again. Another person in the "deflation is good for everybody" crowd. Since this is only your second post, I'll assume you haven't read the countless threads and debates about deflation/inflation and their effects on the economy.
If deflation hits the USA hard enough, it will be bankruptcy. You cannot pay back trillions of dollars in debt with deflation present.
Deflation is not a "bogeyman". Deflation is very real, and very dangerous. Read up on the effects of deflation on an economy. You will realize that there is more at work than simply "prices re-adjusting to new realities."