Tuesday, December 23, 2008
Altair provides an essential summation for why it is nearly impossible for the US economy, and, indeed, the global one, from escaping a deflationary spiral. But when will it stop? And what will the world look like when it does? Very different from the one in which we live today, but that's not very helpful, is it? Responses to Altair, responses that can be found in the comments section to this post over at Calculated Risk, are well worth reading for an engaged, enlightened debate about the nature of the problem, and whether it will invariably be deflationary or inflationary.