CJJ

Deflation Economics and the Dollar

Agree, a good article. I'm not sure why people look at deflation right now as a needed medicine. Sorry, but the debt has already been created. Just letting the companies or people with morgages fail doesn't wipe out the debt. Either way its going to fall onto the US taxpayer. Letting deflation take hold will lead to a self fufilling cycle leading to more failures, higher unemployment, and hoarding of wealth. It won't clean out the economy it will destroy it. Hoarding will lead to a dead economy and it won't matter that people have saved.

Saving is only good to a point and this situation will do enough to improve savings to a more long term healthy level.