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51633516 No.51633516 [Reply] [Original]

Someone explain to me why dollar deflation is bad, and dont say some bullshit like people will hoard cash and spend less

>> No.51633537

>>51633516
a deflating currency means people will hoard cash and spend less

>> No.51633557

>>51633516
hoarding cash
spending less

>> No.51633558

>>51633516
actually there is no flouride. there is no nothing

>> No.51633581

>>51633537
People don’t hoard cash you dumb nigger. Most people are in debt. Deflated currency means your cash goes further you absolute black jewish niggerfaggot.

>> No.51633597

>>51633516
you're watching the effects of rapid deflation now. enjoy

>> No.51633616
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51633616

>>51633581
>>51633537
Oh I see

the consumer having more power is actually bad for the economy

I wasn't ready for this pill

>> No.51633626

>>51633516
It's good for everyone except for those who rely on debt. It's bad in the short term for America because their main export is USD. If USD gets too strong, the labour market has to return to America. If America can survive the pain of returning to being an independent nation, it will start the second golden run of America.

>> No.51633661
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51633661

>>51633516
deflation IS liquidity crisis
liqudity crisis IS great depression

>> No.51633700

>>51633581
Yeah but deflation happens from depression economics and many will lose their jobs ad any debt you are in will become harder to pay off

>> No.51633709

>AND DON'T SAY 4!!!
Beyond this, deflating currency can only be achieved by reducing liquidity. In the crudest sense its what you say. But since we are a debt driven economy the fed accomplishes this by raising rates requiring more dollars which has a similar effect. This generally leads to a reduction of expansion to contraction of the economy as less money in the pocket means they can't expand like they were. This is then bad in the short term as the economy tanks with it. Eventually this works out best for those who could hold dollars but not before ravaging the economy.

>> No.51633717

>>51633626
So I should put a house on my credit card right now

>> No.51633768

>>51633717
Yes. Minimum down payment and Minimum payments.