James Blount

Isn't Deflation a Good Thing?

> Mild deflation is no worse than mild inflation. Markets can
> adjust their expectations.
I suspect "markets" may adjust but people, especially the poor, may have less flexibility.
Have I misunderstood the history of the 1930's? - surely, even "mild" expectation of deflation was an intractable and chronic economic condition, more corrosive than inflation expectations?

> It should be apparent in the next couple of year what assets will
> be the primary bubble market.

I envy your clarity, and would welcome any concrete recommendations?

Isn't Deflation a Good Thing?

Deflation is a contraction in nominal growth. Hiding greenbacks under the bed gains more value than building a business. Debts grow no matter how much a person works. When debt levels are high, deflation is profoundly destructive.
This is BAD.
Disinflation is when prices fall, though nominal growth may remain positive. This situation may occur, but is far too close to deflation for comfort.

Worry about excess money when the worst of evils, deflation, is gone.