Thursday, October 29, 2015

People learned NOTHING from the great recession.

It's just so irritating!

People are trotting out the ridiculous meme about deflation again. Even on Zero Hedge. They keep using the same ridiculous meme even though they have nothing to back it up with.

It goes like this - people stop spending because they believe prices will be cheaper down the road. I can assure you - this is NOT why people stop spending. They stop spending because their companies stop making money, thus making everyone fear for job security. They also could take a pay cut or face layoffs generally. That is what happens in deflation! This is why people stop spending and I wish these idiots would prove just once that deflation actually does anything good to anything! Outside of your electronics getting cheaper. Because the Internet tells me there can never be bad deflation. It's the same stupid meme that they tried to trott out when gas prices fell. I can assure you - when that happened during the Great Recession - lower gas prices didn't make one bit of difference to the economy.

You don't even need a history degree to figure this shit out! It was 7 years ago. No one paid attention at all what happened during the Great Recession.

If deflation was as good as these pinheads always make it seem - why doesn't the Fed set the rate of growth at negative? Huh? Answer me that batman.

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