[wintersFright]

My understanding is that a real deflation would crash the current financial system. Savers in fiat are paid interest from money created from debtors taking loans. In a deflation, the volume of money is reduced. Debtors instead of having their debts inflated away, have their real debts increased. Triggering defaults, triggering destruction of money, triggering further deflation. Savers don't win by having hoards of cash since their assets are the liabilities of the defaulting debtors - which are going up in puffs of smoke.

For this reason, central banks will run interest rates down to juice more inflation....oh wait...they are already at near zero...

[digi_owl]

I guess there is always deficit spending to get things going again...