otbricki

Financial Collapse: A Lesson from the '20s

One problem that clearly exacerbated the Great Depression was that deflation made debt repayment far more difficult. This is why students of that period are so afraid that the current deflationary pressures may cause the current situation to linger.

BUT are their efforts to prevent deflation going to be counter-productive? That is the scary part - we may have stagflation or worse down the road. At least we still have Paul Voelker around. Maybe somebody will even listen to him.