But what's so wrong with deflation? If prices of goods and services decline, enabling the consumer to buy more of those goods and services, isn't that a good thing? The real deflation to which Helicopter Ben refers is the deflation of all of the assets that have been financed by the banking system, potentially rendering the banking system insolvent. But this would be a good thing too in the long run.
With that said, please take the time to read this commentary below which compares our current systemic with that of late 18th century France. The parallels are startling:
The French were in the same boat in the 18th century. During the time of Louis XV, no one could imagine how French society could possibly function if they cut the welfare system or defense budget. So they kept spending… kept going into debt… and kept debasing the currency.Here's the LINK
Back to Bernanke: either he's complete liar or a complete idiot. I doubt he's the latter. No inflation? Anyone out there not paying more for energy, gasoline, health insurance, etc than just 6 months ago? Improving economy? Government-reported GDP for Q4, 2013 was negative. Housing is better? There are 133 million housing units in the U.S., 75 million owner occupied and 40 million renter occupied. That means there's 18 million vacant homes. 4.3 million are considered vacation homes and 3.9 million are available for rent. That means 9.8 million homes are vacant (data is from the Census Bureau). Is that a healthy housing market? Every month more people move onto Social Security disability and food stamps. Over 100 million people in this country receive Government entitlement payments. Healthy economy? Sure Ben...