It's also possible to have goods inflation and
asset deflation at the same time; its definitely possible to not save enough as a culture, or to have resources diverted by the government to fight a war.
Not exact matches
Just as debt
deflation diverts income to pay interest and other financial charges — often
at the cost of paying so much corporate cash flow that
assets must be sold off to pay creditors — so the phenomenon leads to stripping the natural environment.
After seven years of fighting
deflation, central bankers may have
at least won a battle, with implications for
asset prices over the next 6 to 12 months.
The question that I have
at this point in the cycle is how low the Fed will get before they get scared about inflation, and flatten out policy to see which effect is larger —
deflation from overvalued housing
assets purchased with debt, or inflation of goods and services prices.
Now, it's possible to have goods
deflation and
asset inflation
at the same time; it is possible to save too much as a culture.
We look
at an overview of the current financial crisis and the reasons for it — Toxic
assets and why the banks lent so much to people with so little — The Role of The Bank of England and whether reduction in interest rates is working — The possibility of
Deflation — Short selling of bank shares — The World shedding 70,000 + jobs a day — Madoff — How long the recession is likely to last.