Citizen Zeus

A Deflationary Spiral? Not Likely in the U.S.

The reason why inflation over deflation is preferred by the wealthy oligarchy that largely determines the monetary policy in this country is because they own the lion's share of the assets and do not want to contemplate the loss of their own (illusory) billions of dollars on assets.

They don't need the money, but they need the psychological feeling that that they are growing and expanding in order to quell their surprisingly shallow, superfiical, and insecure sense of self-worth. Inflation is also a great way to put the screws to the labor force and workaday Joes.

Just as "disaster (terrorist, war, etc.) mania" can allow for much power to be taken away from individuals (civil liberties, etc.), so an "disaster capitalism" (making everything too expensive for people to by help create a "company town" where everyone is forced to get credit and pay unreasonable prices and forever be under the sway and power of the lender. What greater ownership can there be than to own not only property, but people themselves?