Comments by "Colonel K" (@Paladin1873) on "Things I (Do) Worry About: Deflation || Peter Zeihan" video.

@beibei93 You mean Detroit is not a success story? 😉
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Deflation was not the cause of the "Great Depression", but an effect of it. The dollar was very strong, but few people had many dollars to spend. There is nothing inherently wrong with having a strong dollar, indeed, it can be desirable. One could argue that some of the possible causes of deflation are economically unhealthy, such as a contraction in the money supply, but even this does have to lead to a reduction in consumer demand or productivity. By comparison, inflation is the opposite of deflation and can be very destructive if it is artificially induced by government printing presses, as happened in Germany in the 1920s and still happens today in Zimbabwe here trillion dollar notes are common.
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