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Originally Posted by arock10
Less spending causes less demand which causes prices to fall. Deflation.
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What the hell? There are many factors that are involved in this. There's domestic demand and there's international demand. If domestic demand falls, international depend actually picks up because the dollar is shit now. Demand Side economics is stupid.
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There is barely any inflation right now even with us printing plenty of money. So if we stop the spending, stop the printing that would leave us with.... yes, you guessed it, deflation.
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As opposed to hyperinflation in a few years followed by economic collapse? And we won't get deflation, we will get stagnation/disinflation. Deflation occurs when the interest rates are negative.