Robert Nabloid

Deflation Economics and the Dollar

Good article.

"As prices decline, a dollar buys more goods."

Not if the dollar is also declining and most goods are imported.

"The cars and houses that might have been bought with borrowed money sit unsold."

This is part of the problem - most of us can only afford to buy such luxuries with debt. Many of us have these luxuries and are already burdened with debt. How many can take on more debt? I sure don't want to. Do you?

"Is it any wonder the dollar has lost heavily in the past several weeks?"

I completely agree. The Fed will continue to print and spend until deflation is no longer a risk. That is precisely the problem I have with the USD.