Deflation is a disaster.
I tend to agree with that. If every small business owner were to lose 40% of their income next year this country would be in a world of hurt.
You got it. Saudis are cutting prices because demand can’t meet high supply. We’re awash in central bank liquidity which has made it easy for every business to borrow in order to expand. But there’s not enough demand in the world to absorb the supply that’s been created by the bankers. Looking around the world, every commodity price is coming down. Think of the supply chain effects of energy and mining collapsing. There’s little upside - cheaper to manufacture and farm? So what, there’s not enough demand for the excessive supply. More companies will need to go out of business to balance it.