[qwytw]

What about a farmer with a "fixed" mortgage on his farm who can no longer afford paying it since grain prices fell by 50%? (Which is something that actually happened to millions of people). There is hardly anything worse that can happen to a modern debt based economy than significant deflation.

Claiming that the great depression or the long depression that preceded it were not exacerbated by the governments inability or unwillingness to artificially inflate the money supply is delusional. The deflation rate was above was 9% in 19931, 10% in 1932 this continued until 1934 which when prices started rising again, however 38 and 39 again had negative inflation.

The period preceding the great depression was not inflationary either, inflation in 1921 & 1922 was -10% and -6.15% and the rest of the years had relatively low inflation. In fact the Dollar's value only fell back to what it was in 1920 in 1946.