07-19-2016, 01:00 PM
(07-19-2016, 10:36 AM)disasterzone Wrote: I think we need massive deflation. That's the only thing that will bring prices back to normal. If there's massive pay increases, people will use that to justify making the prices higher. It's harder to justify massively lowering the wages in deflation.
Deflation ravages debtors. Cut prices and wages by 90% and you will magnify the burden of debt by 10 times.
You might also find a pre-revolutionary situation. People with no hope except the overthrow of their creditors will be vulnerable to any extremist appeal that promises to lighten their burdens.
The ideal subject of totalitarian rule is not the convinced Nazi or the dedicated Communist but instead the people for whom the distinction between fact and fiction, true and false, no longer exists -- Hannah Arendt.