Newspapers everywhere talk about deflation and I guess I understand the argument in a general sense, but I do not believe it. Or maybe I should say that I believe that deflation and inflation can occur simultaneously. That is to say that you can have deflation in the sense that currencies increase in value relative to other currencies, or that products decrease in cost in this confused economic environment. But at the very same time that such a phenomenon takes place only in the limited sphere of economics proper. The truth is that the value of currency, the value of anything, is declining rapidly. Objects are losing all value. Institutions are losing all value. Currency for that matter is based not merely on a equation between money circulated and demand, but rather on ideology itself. In this age we are witnessing a radical inflation of institutions and beliefs that is gutting the world, and specifically the United States. Currency is but a small part of the picture. But I would argue that currency as well, yes, is subject to a radical inflation. That inflation is hidden by the association of currency with other institutions which look stable but are themselves dangerously inflated.
Charles Park :
“Currency is “deflated” by quantitative easing and decline in economic activity. Deflation is in part a function of declining oil prices. The former is if a greater concern to the long term health of the economy and symptomatic of the unrealistic inflation of the importance of certain institutions.
Money’s deflation migjt be symptomatic of the fact that institutions are losing value to the demos.
This is how policies that magnify inequality destroy value of the currency and ultimately self- defeating in terms of long term wealth creation.â€
Emanuel Pastreich:
“What I want to stress here is that the fact that there is deflation does not mean money is worth more. In fact, it means the opposite.â€