I am afraid of inflation, what will happen if deflation comes? Absolutely in all cases when was rampant inflation, followed or not by monetary stabilization, during the slavery-era or capitalism, in all cases, absolutely all, the main feature was that the goods disappeared, there was nothing to buy, a fact that is not happening now. Everybody has something to sell but nobody buys. People don’t buy not because they don’t have money but because they don’t need anything, they have everything, and they really don’t need any Chinese shitty thing.
If there will appear a state of panic that galloping inflation comes then probably all people will spend their money on unnecessary things and then all the prices will go down (salaries as well). Those people who didn’t spend their money (didn’t believe that the galloping inflation comes) and still have savings will live very comfortable because everything is cheap for them. The farmer can’t say that he doesn’t sell his products because the price is very low. He needs money to pay his bills (electricity, gas, water) and continue his business.
In case of deflation, people are forced to work harder than in case of inflation. In fact, inflation and deflation are the two sides of the same coin (one is the face and the other is the reverse), which is the distortions in the economy. Inflation is non-customized tax that people pay from the previous work and deflation is non-customized tax that people pay from the present work.
Inflation is when there is money but not goods and deflation is when there are goods but not money.
Very often, inflation is just a political decision, a very smart and ingenious way to steal money from citizens. Everybody must understand that money (the physical piece of paper) belongs to people but the value of the money belongs to the state. Actually, if I think deeper, I realized that, now there is no capitalism. There is just a complete anarchy. In newspapers and all other mass media, contradictory terms or pleonasms are often used.
It says: “free regulated market economy”. If it is free then it shouldn’t be regulated and vice-versa. Then, it says: “negative growth”. If it is a growth, how can it be negative? When I hear these economists talking, I have headache. Probably they talk this way on purpose to confuse people.