Comments by "Kevin Hicks" (@Hickalum) on "🔵 Deflation (2020), High Inflation (2021-2023!), then Stagflation (2023-?)" video.

  1. mason appalachiantrail ; I agree, deflation is coming. This will be a very dangerous time due to the abundance of positive feedback loops once Bad Things start happening:- Job losses, foreclosures, calling in debt, lending stops, money supply down, wage deflation, money hoarding, spending stops, bankruptcies, death, destitution, collapse in house prices, negative equity, collapse in confidence, asset values down, business values down, profits down, investment down, inequality (ie; money in the wrong place), debts and defecits, austerity, pessimism etc, etc...
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  2. Inflation is essentially stable because of Negative Feedback eg; house prices go up -> housing becomes unaffordable -> prices stop going up. Deflation is dangerous because of Positive Feedback. Neil described one such positive feedback loop at 9:00. There are a plethora of positive feedback loops once deflation kicks in where one Bad Thing increases another Bad Thing eg;- Job losses, foreclosures, calling in debt, lending stops, money supply down, wage deflation, money hoarding, spending stops, tax receipts down, health systems collapse, death and destitution, bankruptcies, collapse in house prices, negative equity, collapse in confidence, asset values down, business values down, profits down, investment down, inequality (ie; money in the wrong place), debts and defecits, austerity, pessimism etc, etc... It's a slippery slope!
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