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Pittsburg, Kansas | Here is another example of a nation falling into a deflationary spiral. Yet if they devalue the currency, the average citizen will see prices for the goods they need to buy if they actually devalue the currency enough to make any difference in inflation levels.
http://www.zerohedge.com/news/2016-01-09/46-months-accelerating-def...
A deflationary business environment and the value of a currency are two distinct variables. It is hard to measure and describe both conditions or in other words variables with a single word such as inflation or deflation.
So what the Fed is really saying when they want 2% inflation is that we want you to have to pay 2% more for stuff to give an additional portion of your income to help out all the businesses and people (and government) that are hopelessly in debt.
John
Edited by John Burns 1/9/2016 10:04
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Deflation
