This you describe is the deflationary cycle that perdured in the US between 1930 and 1934, during the fisherman's term. By some reason elected leaders think this can't happen today. There are certainly huge differences from then to now, a modern currency system, "free" international trade, high economic inter-dependence. Problem is: the deflationary pressure can mount to such extremes that may destroy all these features. I hope it will never come to that.

luis_de_sousa@mastodon.social