heres one way of thinking of this
unbacked paper money is only worth anything because of faith (it may be faitht htat the govt will shoot anyone who doesnt use it but it is still pure faith)
inflatson is going from faith to much less faith is easy. lose half your faith an prces go double; lose 90 and prices go up 1,000 percent. 10,000 percent inflations are common. 1,000,000 percent inflations occur. curencies fail complet3ly in time...always., get it? this manifests as hyperinflation or fleeing the paper. indeed there is infinite downside and it is so easy it is inevitable
defaltion is opposite requires enormous increase in faith how likely is that? how easy? even a 50% increase in faith in paper has never occured and that w2ould only be 25% deflation tikon;not hyper to begin with and second it has never happend i dont think.
great depresion only produced maybe 20 percent deflatiion and that was really faith not in paper but in teh gold you could exchange for. and then you cuodn't exchange and the fiath went awauy immedieately
winning world war 2 didnt even produce any faith increase (no defaltion in cpi) get it?
what is going to produce more faith than winning a world war and being crowned most powerful and wealthy contry in the world? and world war 2 didnt do it.
deflation is like that bogeyman in your closet. only children and idiots fear it or even believe in it and no amount f goast stories make it any more real
there have been zero hyperderflations in the world. wouldnt hold my breath waiting to be the first in all human history jsut because jeusus loves us.
i dont really thinkm the cpi is the best way to measure infoation and de but that is what most poeplel mean when they talkof these things so my arument is on that basis.
my head and hands hurt from such a long wrriting., i need to take a nap now
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