This is true.
We are undergoing a massive deflation in this crisis, and very, very few observers are calling it thus. The government will try all sorts of stuff to try and stem this tide, but with each new effort, they'll find they're pushing on a string.
All the excesses of the past 60+ years are going to be expunged, come hell or high water. That period of time represents a lot of excess, and we still have a ways to go.
It doesn't mean the end of the economy or the end of the world (well, between the current cast of characters and the Bozos coming in, it does look disheartening, but...), but it does mean we have to start looking at things from a much different perspective. That, believe me, is the only change we can truly believe in today.
We've lived in an inflationary environment for so long, no one knows about deflation, it's effects, and how to get a handle on it.
That's why we have books written by people like Ludwig von Mises, Murray N. Rothbard, and Lew Rockwell, among others. It's time to re-familiarize ourselves with their writings.
We ought to start a teaching-type effort about such things here on FR. Give ourselves a chance to get a good jump on tomorrow. For those of us who can discern, and profit from, new emerging opportunities, we'll indeed be able to say, "It was the best of times, it was the worst of times..."
CA....
“We ought to start a teaching-type effort about such things here on FR. Give ourselves a chance to get a good jump on tomorrow. For those of us who can discern, and profit from, new emerging opportunities, we’ll indeed be able to say, “It was the best of times, it was the worst of times...”
Very good point. I have the “surviving socialism” pinglist, I just need the articles. I’ll start looking around. If you have any in mind, please let me know.
WOW!
Do I ever agree with you! Please start the “teaching” thread here on FR. There are so many who have no idea of what to do in this weird economy!
And, unfortunately, many of them are our adult children. Mine are in shock, and have lived all their young adult lives in the recent “up” times. It is dawning on them that something is changing, but they are so stunned, they do not know what to say or do.