The economies of the euro area monetary union are close to deflation. In May 2015, the annual rate of inflation averaged 0.3% across the euro area, after six months during which the rate of inflation had been zero or below. The question then arises as to whether the deflation has been internally or externally generated, whether it becomes self-perpetuating, and what the consequences would be.
Wednesday, June 24, 2015
Philip Arestis and Malcolm Sawyer — What if the Euro Area is Led to Serious Deflation?
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2 comments:
"lower wages."
Maybe that's the whole idea?
But on the bright side, Cold War 2.0 continues to escalate. The future is bright for the military-industrial complex.
Deflation is here to come, with a brutal decrease of the population in the West (ie. major consumers). And even the economies which are developing like China are bound to suffer from it.
On the long run this is good for the environment and humanity, but because we think we can run out of paper to settle transactions we create a destructive dynamic that leas us to brutality, war and poverty. And war is the worse economic possible as it destroys a lot of capital of any form and shape, and ofc, human lives, and the environment.
Instead of enjoying the huge productivity, excess capacity and more resources per capita that we will have available and explore new forms of distributing wealth and try to raise the rest of humanity and lead the way, we will explore new ways to destroy ourself while thinking that "being austere" and "free markets" will save us all.
Barbarians are the ruling class.
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