There are ways to counter deflation. You're hearing about only one, as if there is no other. One is for the Federal Reserve to reduce the interest rate (even down to zero or less — paying banks to take the money to lend). Japan actually reduced their rate to zero in the 1990s, which action resulted in the carry trade where people borrowed from Japan only to lend somewhere else at a higher interest rate.

The other way to counter deflation is by printing and giving money away to the common people. With the money supply vastly increased, spending would result. Prices would rise, as would production. It's that simple.

So what's the hang-up? The hang-up is with the bankers who wouldn't make any profit up front on such a deal. It would also give the people ideas about how they don't really need bankers if their governmental representatives will simply introduce money into the system at proper levels to match real productivity.

You see, the answer is right there. It's as easy as can be, but they are refusing to do it out of their own greed. They are refusing to call the banking system the scam that it is.

You may ask where I learned this. I learned it by piecing things together. I didn't read it or hear it somewhere from someone. I learned it, because I sought the answer of what would be best for the people so they wouldn't suffer.

"Deflation Anxiety: The Rising Threat of Falling Prices," by Bill Powell. Time. November 6, 2008.

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  • Tom Usher

    About Tom Usher

    Employment: 2008 - present, website developer and writer. 2015 - present, insurance broker. Education: Arizona State University, Bachelor of Science in Political Science. City University of Seattle, graduate studies in Public Administration. Volunteerism: 2007 - present, president of the Real Liberal Christian Church and Christian Commons Project.
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