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jimkane
Rep: 3,058
Posts: 33,089
Interesting article, but I'm mostly posting it as a reference for this one quote.
"Iceland went through a similar deflationary event to that risked in the US today when its banking system collapsed and the currency halved overnight."
Now, wait, during a deflation their currency got cut in half? No, hold up, wait, all I've ever heard is that during a deflation cash is king, it's super rare, and its buying power increases. Yeah, uh-huh, that's what really happens in the real world. My money gets me more stuff. Uh-huh. Deflation and less buying power. Makes sense.
http://www.zerohedge.com/news/2013-10-12/gold-debt-ceiling-and-fed
"Iceland went through a similar deflationary event to that risked in the US today when its banking system collapsed and the currency halved overnight."
Now, wait, during a deflation their currency got cut in half? No, hold up, wait, all I've ever heard is that during a deflation cash is king, it's super rare, and its buying power increases. Yeah, uh-huh, that's what really happens in the real world. My money gets me more stuff. Uh-huh. Deflation and less buying power. Makes sense.
http://www.zerohedge.com/news/2013-10-12/gold-debt-ceiling-and-fed