Economy logic is like someone took real logic out behind the shed, hacked it into a million pieces, and then glued them together as they fell and looked at the resulting mish-mash and said 'these will now be the rules'. It will never make sense.
Deflation (IMO) is good as long as you 1) have 15 years at least until retirement 2)Keep your job at its current rate of pay and 3)Are not relying on the value of your house to subsidize your (now non-existent) retirement investments.
As I understand it, deflation is a problem if you have a lot of debt, because the real value of what you owe is more than the real value of what you received. If currency continues to increase in value, your hourly wage will decrease to keep the same real value, meaning you have to work more hours to make the same debt payment. Imagine if someone in 1970, making say $20,000 a year, had to pay off my student loan and car debt of over $50,000!
But yeah, I got mentally turned around a few times just writing this comment!
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But yeah, I got mentally turned around a few times just writing this comment!
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Thanks to you and Iolanthe_Rosa...
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