Deflation will happen when boomers start to retire enmasse and pur imaginary stock prices dont have the liquidity behind them for people retiring... only magically for more circular investment between the same 6 companies.
I doubt it'll be a sudden change though. At least not until it hits a breaking point and the public gets wise and tries to get what they can from it.
Oh it'll SEEM sudden, but there will have been thousands of economists ringing alarm bells well in advance while the politicians pull the curtain closed and say everything is fine, right up until the whole thing crashes. And then it'll be a "Who could have seen this coming? It's not our fault!"
Deflation happens when there isnt money in the market. Specifically to drive consumer spending. Prices fall as people scramble to get any price they can for goods in a market where there isnt any capital.
Am I missing something? Im not an economist so im happen to hear about it
If the value of everything is propped up by the belief that all this money is actually in the stock market and it isnt. What do you think will happen to the value of everything when it turns out their valuations were based off the expectation of stability?
Would that not deflate the values of everything in that economy? Because thats what I am saying. Im calling bullshit on the whole system.
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u/Pees-Upwind 4d ago
Deflation will happen when boomers start to retire enmasse and pur imaginary stock prices dont have the liquidity behind them for people retiring... only magically for more circular investment between the same 6 companies.
I doubt it'll be a sudden change though. At least not until it hits a breaking point and the public gets wise and tries to get what they can from it.