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Fiendish Thingy

(22,967 posts)

4. That's not deflation

Reply to gab13by13 (Original post)

Sat Mar 7, 2026, 11:07 AM

Mar 7

inflation will be cured by people cutting way back on spending. Right wing economists are praising this possibility. What they will not call this is what I call it, deflation, people, well not counting rich people, will not be able to afford the bare necessities of life.

That’s not deflation, that’s a recession, which often cools inflation, but rarely results in actual declines in prices for commodities and products.

Deflation is when prices (other than gasoline and real estate) actually decline, usually accompanied by high unemployment and shrinking GDP.

Mild Deflation happened briefly from 2008-09 and again in 2020 during COVID.

Before that, you have to go back to the 1930’s.

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Krasnov May Cure Inflation [View all] gab13by13 Mar 7 OP

the rest of us call it recession... or depression lapfog_1 Mar 7 #1

When the private credit market implodes inflation/deflation might not seem that important. NoMoreRepugs Mar 7 #2

Zimbabwe's inflation got so bad, they printed a 100 trillion dollar bill as currency Norrrm Mar 7 #3

That's not deflation Fiendish Thingy Mar 7 #4