Debunking "deflation is bad"...
Ideas to take with you.
- 01
Inflation is not a natural phenomenon. It is a structural requirement of a system in which money is issued through debt and the interest is never created alongside the principal.
- 02
Cascading defaults, not lost consumer appetite, are the real reason broad deflation would break the current economy. Households would still buy food and shelter at lower prices.
- 03
Money issued at the top concentrates gains near the point of issuance, which is why asset owners tend to outpace wage earners regardless of effort.
- 04
The 2% inflation target sits downstream of the monetary system itself. Academia, media, and policy reproduce the framing that the system requires to stay legitimate.
- 05
A neutral, fixed-supply monetary layer allows technological deflation to flow to ordinary holders of the money rather than be absorbed into debt expansion at the top.
