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To: AAABEST

Higher interest rates, because they are deflationary, can be used by central banks to fight inflation.

Interest rates have been lowered, however, worldwide because central banks are fighting deflation. Poorly.

The world is still stuck in a deflationary death spiral.


37 posted on 06/22/2009 11:11:57 PM PDT by Southack (Media Bias means that Castro won't be punished for Cuban war crimes against Black Angolans in Africa)
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To: Southack
The world is still stuck in a deflationary death spiral.

But Southack, if that's true, why then is the price of everything (save for a few anomalies) going up? The price of money, wine, toys, food, energy, commodities - nearly everything.

Am I living in some alternate universe, or are you seeing this where you live also?

39 posted on 06/22/2009 11:30:22 PM PDT by AAABEST (And the light shineth in darkness: and the darkness did not comprehend it)
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To: Southack

***can be used by central banks to fight inflation.***

Not printing money can also be used to fight inflation.

***The world is still stuck in a deflationary death spiral.***

You make it sound like falling prices are a bad thing.


41 posted on 06/23/2009 12:04:51 AM PDT by djsherin (Government is essentially the negation of liberty.)
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