Flat line = Dead

Tuesday, April 09, 2013 Francisco Carneiro 0 Comments






What is the problem with the world? There is too much of everything.

What is the problem with that? You have deflation, the prices should go down to raise demand

Is there a problem with Deflation? yes if you know that something is going to be cheaper tomorrow you wait

If lot's of people wait you have a big recession and the prices go down even more. You will get a big unemployment but at some point you reach an equilibrium. Very painful.

What is the solution?

I don't know, if you give 500 usd a month to every soul what would happen (Print & Give)?

I guess you would get a bit of inflation on hard asset's and the prices of everything else would stop the falling

after some years with automation prices would start to go down again and we would need to print USD 1,000 per person.

This is a kick the can solution.








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