Deflation v Inflation – Comprehending What Will Come | Armstrong Economics.
QUESTION: Martin,
While I clearly understand your reasoning for deflation in the US allied to a very strong dollar; does the opposite apply to those countries, like the UK and European economies where their currencies are likely going into freefall?
Keep up the brilliant work. Is the movie coming to the UK?
AB
ANSWER: Yes. Britain abandoned the Gold Standard first during the Great Depression and its economy end the deflation and was the first to recover. This was one of the very arguing point of George Warren to devalue the dollar to Roosevelt to reinflate the economy. Germany has imposed deflation on everyone really tearing the European economy apart because they do not understand why they even went into hyperinflation.
The rise in the dollar in the US as other other economies were defaulting pushed the USA into a deflationary depression. This then set in motion protectionism as they failed to understand the mechanism unfolding.
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