'Deflation may actually boost output. Lower prices increase real incomes and wealth. And they may also make export goods more competitive.' - BIS

'Deflationary Trends

By the way, this is extremely deflationary. In general, technology is. And it is well beyond foolish for central banks to be fighting it.

BIS Deflation Study

The BIS did a historical study and found routine price deflation was not any problem at all.

“Deflation may actually boost output. Lower prices increase real incomes and wealth. And they may also make export goods more competitive,” stated the study.

For a discussion of the BIS study, please see Historical Perspective on CPI Deflations: How Damaging are They?

Central banks’ seriously misguided attempts to defeat routine consumer price deflation is what fuels the destructive asset bubbles that eventually collapse.

Debt Deflation Coming Up

Another debt-deflation bubble bursting episode is coming up.

All it takes is an economic slowdown or a change in attitudes of greater fools willing to chase the market higher and higher.

MIke "Mish" Shedlock, Uber Self-Driving Trucks Delivering Goods in Arizona, March 6, 2018



Context

'..central bankers create very destructive asset bubbles that eventually collapse..'

'Central banks’ seriously misguided attempts to defeat routine consumer price deflation is what fuels the destructive asset bubbles that eventually collapse.'

The Dangerous Delusion of Price Stability - William White


(Global - 2018) - '..manifestations of Monetary Disorder..'

'You’ll often hear risk being equated with return on financial television..'

(Banking Reform - English/Dutch) '..a truly stable financial and monetary system for the twenty-first century..'