This goes along well with my last article, Depression in the 21st Century, where I urged the abandonment of unnecessary fear in understanding what a deflationary depression would look like for various people.
Lynn concludes his article:
There are winners and losers, just as there are from most economic developments. The important point is that the people who lose are more powerful than the people who gain. That might explain why we hear about the dangers of deflation, and not about its advantages. It still doesn’t make them right.
There is no threat from deflation. It may even be desirable if it encourages a balance between saving and consumption, and discourages governments and banks from taking on debt.
If Lynn's conclusion sounds conspiratorial, it's because it is. "The money interest" as it used to be known will stop at no end to ensure that they are able to increase the supply of it at will. 180 years ago this meant attempting the assassination of Andrew Jackson - six times. Murray Rothbard's book, A History Of Money and Banking in the United States, is perhaps the best book to read for understanding these realities. It destroys popular misconceptions and attacks those originally responsible for their adoption into mainstream thought.
As an extension to Lynn's piece today, curious readers may wish to explore a more in depth piece discussing deflation and the misinformation that has typically been tied to it. To do so, I recommend Jorg Guido Hulsmann's monograph Deflation and Liberty, which can be read free in its entirety at that link.
It is high time to put an end to the culture of fear being propagated by central bankers and their minions in government. Neither deflation nor a general economic depression can be seen as an unquestionable evil. Both will reinstate discipline in our markets and provide justice for the responsible.
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