Originally Posted by Don Zeko
Certainly those bad consequences Keynes describes occur in countries whose currencies are actually being debased, like Weimar Germany or the Confederacy in 1864. But we are not them, and Keynes well knew that any deflation at all can be just as ruinous as runaway inflation. And today, we don't have a debased currency.We have
a core inflation rate of 2.15%, along with persistent high unemployment and a huge private debt overhang. If you look at these facts and start screaming about Weimar and debased currencies, that means you aren't willing to see what's in front of your eyes.
Looks like someone's been reading more economics, but still can't see the forest from the trees. Some questions you ought to ask yourself:
1. What does it mean for a currency to be debased?
2. Why is the dollar the exception?
3. Will we always be