Recent content by mightymatt

  1. M

    The downside to deflation in a debt-based monetary system?

    Maybe I'm confused, but It's my impression that you would rather spend money in a deflationary environment. In a deflationary environment, your money has more purchasing power. Think of gas. You were able to buy gas for less money last week than you could this week...
  2. M

    The downside to deflation in a debt-based monetary system?

    The higher gas price is an inflationary force as I understand it. The increase in the money supply due to artificially low interest rates is causing the price of gas to go up.
  3. M

    The downside to deflation in a debt-based monetary system?

    If interest rates go up by n%, the available credit available credit goes down. Suppose you were going to take out a 20k car loan at x% and now the interest rate for that loan goes up. You monthly payment was going to be $300 per month, and that's the most you could afford. Now the interest rate...
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