by Charles Hugh Smith
Of Two Minds
If we step out of the conventional brainwashing about how bad deflation is, we discover it’s actually good and it’s inflation that’s bad.
We have been brainwashed into believing that inflation is good and deflation is bad. The truth is that inflation is good for banks and bad for households, while deflation is bad for banks and good for households.
Since ours is a bank credit system enforced by the Central State, what’s bad for the banks is presumed to be bad for everyone.
This is simply not true. Inflation is “good” for borrowers, but only if their income rises while their debts remain fixed. For everyone with stagnant income–and that’s 90% of the nation’s households–inflation is just officially sanctioned theft.