Deflation? Yeah. And. So. What.

Food getting cheaper. Good or bad?
Cars getting cheaper. Good or bad?
Fuel getting cheaper. Good or bad?
Electronics getting cheaper. Good or bad?

If you answered “good” to the above, you’re probably an ordinary, sensible individual.

If you answered “maybe…possibly bad” you’re probably one of the Keynesian fuckwits in government running economic policy or a journalist writing in the popular press.

Now technically, deflation is a contraction of the monetary base, and falling prices are a symptom of deflation, not the deflation itself, but no matter, we’ll discuss deflation using the mass media’s definition, as falling prices.

Somehow, they are trying to convince us that things getting cheaper, is a bad thing. You may have thought they are cleverer than you, that they have spotted some subtle insidious evil behind what is surely a good thing, thanks to their superior intellect and economic training.

Nope. What you instinctively feel is right, is right. But you see, they have ulterior motives for preventing falling prices.

Deflation strikes terror into the hearts of the ruling elites, even though falling prices leaves exactly those sections of society that deserve it the most, better off.

The problem is, our entire monetary system is systemically dependent on debt, which is subsidised by inflation. If we get into a deflationary situation, the whole pyramid scheme that is our fiat money system becomes dangerously exposed.

Watch out for one of those anti deflation articles in the popular press, or a feature on the BBC. There’s a pattern.

It usually starts along the lines of, “falling prices, you’d think they are a good thing, wouldn’t you?”

Er, yes, funnily enough, I’d rather pay less for things than more, I’m weird like that.

Then you’ll get:

“But if sustained, consumers will defer their purchases waiting for prices to fall further and this becomes a negative feedback cycle”

This is utter bullshit.

Do flat panel TVs sell? Do mobile phones sell? Do computers sell?

We all know there is something better round the corner that will be cheaper but we still buy these things.

“Deflation raises the real value of borrowers’ debt”

That is correct. Simple response: good. Guess what, the mess we are in right now is because credit was and is too cheap. We need less borrowing and more saving. Unfortunately, the Keynesians are in charge (that would be the shit-eating cock-knockers who got us into this mess in the first place) and they hate savers (who benefit from deflation).

"So the quantitative easing policy is essential to avoid the awful prospect of deflation"

Printing money that is not backed by an increase in real resources won't help when prices are falling, rising, staying the same or slightly moist. Only the disciples of the something for nothing prat economist J. M. Keynes believe otherwise.

In summary, the government is doing everything possible to stop your cost of living going down, and the mass media are day in, day out, running pieces to convince you this is a good thing.

I’ll let you decide whose interests they are looking after.