Pete, there are two things wrong with your statement:
1. That’s not the history of deflation in America. Pre-Fed, every deflation has found a bottom and the economy restarted for free market reasons. Furthermore, pre-Fed all prices fell so that wage deflation also saw price deflation. That’s the real history of deflation in America before the Fed.
2. Post-Fed, there is for certain among every economist a “good” form of deflation. It is that caused by rising productivity which drives prices down. In part we’re seeing the effects of lower energy prices throughout the economy, but an economy that is experiencing rapid productivity gains will experience deflation and that’s good. It is growth driven. Under a productivity deflation it is certain that consumers would “save” money or better put have more money while doing nothing themselves. See lower gas prices estimated to put $200 billion into the hands of consumers.
Let’s not muddy the water. The Congress has a Constitutional duty to “coin” money. The chose the Fed, but that doesn’t mean it’s an ideal choice or that alternatives don’t exist. Take a look at the “Long Depression” that wasn’t a depression.
Here’s the Wiki-view: https://en.wikipedia.org/wiki/Long_Depression
And Mises argument against it being a depression:
http://wiki.mises.org/wiki/Long_Depression
jobless w/ banks charging negative interest and foreclosing
That’s not the history of deflation in America.
The last two times that we had deflation was early '09 and the early '1930's. Most folks checking those eras have no problem seeing increases w/ joblessness, bank fees/failures, and foreclosures.
a “good” form of deflation. It is that caused by rising productivity
We're together on the idea that instead of a general drop in overall prices across the board, we can actually benefit from price cuts for just a few items or sectors. This is why I'd argue the article's off the mark by thinking energy deflation would cause another crisis --I'm w/ you saying it'll help.