Hey guys for the longest time I always thought that inflation was the only bad thing but after doing some research a bit now deflation is as equally bad as it causes:
1.) delayed purchases ( people won't buy things knowing that their money would deflate in value so they can purchase that new house or new car for fewer monies the next year )
2.) Deflation causes disruption in loans, bonds, treasury bills and etc. If the Goverment borrows money say 1,000,000 USD to obviously pay its creditors at a higher rate let's sa 2% so 1,020,000 USD because of deflation the purchasing power of 1,020,000 would now be higher than what was originally intended
Bottom line is inflation and deflation are neither good for the economy. So what asset is liquid that consistently retains its value overtime ?
Let me know thanks!
Submitted August 25, 2021 at 01:37AM by Justingolw https://ift.tt/3BdnW8W
