[Domalais]

The market is highly resistant to deflation, specifically in the labor market. A low rate of inflation allows real wages to decrease without pay cuts - employers simply freeze pay or give raises which are less than the rate of inflation. This avoids the market trauma of actual pay cuts, which have severe impacts on consumption and consumer confidence.


What you mean to say as “The Economy” is some vague, elitist notion of what they as a class feel is the present desired economy. Basically big gov, big fiance and their associated Mini-me’s.

What total BS. It's not the California Reserve, the Your Living Room Reserve, or the Cleveland Reserve. It's the Federal Reserve, and its bread and butter is the Federal economy. Is your proposal that each state have its own currency and reserve bank? Or do we need more reserve banks than that?

[Leisler]

The market is highly resistant to deflation, specifically in the labor market.

It is now, it wasn't always.

Yes, I would like to see state banks. The Constitution doesn't forbid it. It does forbid a Federal Bank, hence the Freddie/Frannie quality Federal Reserve, LLC. Since you are so knowing, what state still has it's own state bank. ( and is doing pretty good )