Deflation is worse than inflation, and while increased money supplies may fuel inflation, increasing debt and shifts in financial practices may be fueling deflation. Some argue that the world economy is already in deflation which is why debt-heavy countries like Greece are having trouble, fossil fuel reliant countries are losing revenues, and wealth accumulates. Official inflation numbers in the US are much more moderate, but even there, people argue that the official inflation analysis does not reflect the real cost of living. If deflation is global while interest rates are low, conventional mechanisms probably won’t suffice to protect the economies. Debts become more difficult to repay. Profits become more difficult. Conversely, the people most likely to benefit are the people with so little that they don’t have debt, and are already making minimum wages that are less likely to drop.

(Click on the graph for the link.)

“Approaching A Global Deflationary Crisis” – Credo

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