Online Economics Chatter Is Incredibly Frustrating and This Is Why

@DeWayfarer What I was saying was way simpler, it isn't based on math, it's based on a simple understanding that the macroeconomic impact of defaulting on your debt is deflation itself. Most observers forgot before the Federal Government bailed out the banks, housing prices collapsed by 20 percent from 2007 to 2009 precisely because people were defaulting on their mortages so the dollar quite literally went further against housing during the crisis meaning defaults ARE inherently and structurally deflationary. in fact it's impossible for them to be upward price pressure. All Defaults are, without exemption, Deflationary. So if people are in default, it's necessarily downward price pressure.

@PDXNative1986

But you are only talking about one aspect of the economy there. He is talking about all aspects of economics and how they interact with each other.

It's not linear because there is multiple aspects.

Here is a analogy:

You're talking about bananas. He is talking about all fruits.

All fruits have good aspects and bad aspects. Tapioca in the raw is a poison. It will kill you despite your eating a banana.

What good does it do the economy if you are dead? 🤷🏻‍♂

Yes the economy. It's the even wider picture.

@DeWayfarer Yes but there are no types of Debt defaults that aren't deflationary.

@PDXNative1986 they all interact. And none at the same rates.

@DeWayfarer True, Not all of them cause the same degree of Deflation, that is a fact, But they all have in common that they cause deflation to a variable extent.

@PDXNative1986 We all die. That's a fact of life. It's as well deflationary. We have over come the deflation by over reproducing. If we don't expand we will run out of resources to increase the expansion. Again a deflation.

@DeWayfarer True, people aren't having enough kids to keep infinite growth going.

@PDXNative1986 Now think of Elon Musk. And what he attempting to do with his space thing.

The guy has 14 kids!