From SFGate, the claptrap below is describing symptoms instead of the disease. The disease is corruption/criminality and systemic monetary theft at the very highest levels of political/ monetary system power: Heres more on why low inflation can be unhealthy for an economy: __ When prices barely move, many people and businesses postpone purchases. Why rush if the same price — or lower — will be available in six months? Collectively, such delays slow consumer spending, the economys main fuel. __ When prices dont rise very much, neither do company sales or salaries. That is, workers wont receive higher pay if their employers profits arent expanding. __ It magnifies debt burdens. When income remains stagnant or even drops, then paying the interest on loans becomes a heavier financial burden. __ Too-low inflation raises the prospect of something worse: Deflation, a broad decline in prices, pay and the value of stocks, homes or other assets. Deflation can further restrain spending and even tip an economy into recession.
Posted on: Sat, 01 Nov 2014 15:26:59 +0000
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