EDITOR NOTE: This video is a short and highly-informative primer on the questions surrounding monetary deflation. It answers the question: if central banks are printing so much money--something that will likely bring about “inflation:--why are we then experiencing “deflation”--enough to prompt the Fed to take on an aggressive pro-inflationary monetary framework? The brilliant thing about this video is that the answer to this seemingly complex problem is deceptively simple. More importantly, it explains how deflation can have a severe negative impact on our economic prospects. Think Japan. What this means for our stock market and economy is comparably dismal--we may be on the verge not only of a major stock market crash but long-term sluggish growth. It’s what financial pundits call “Japanification.” That’s where we’re heading. And this video clearly explains how it might happen.
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Originally posted on Deflation.com
