Feb 28th 2013 7:15am est
Ben Bernanke has spent the last two days testifying to Congress – under oath – the economy is improving and that his money printing scheme has saved the system without risking inflation. He really emphasizes the avoidance of deflation.
But what’s so wrong with deflation? If prices of goods and services decline, enabling the consumer to buy more of those goods and services, isn’t that a good thing? The real deflation to which Helicopter Ben refers is the deflation of all of the assets that have been financed by the banking system, potentially rendering the banking system insolvent. But this would be a good thing too in the long run.
With that said, please take the time to read this commentary below…