Re-Heat
Thanks for the summary.
Deflation or the threat of it, will start to be a real issue over the next 6 months or so. Falling prices will or are as a result of falling demand rather than the benefit of improved production performance. The fall in demand is primarily caused be the failure to keep increasing the money supply to power that demand. It soon becomes a spiral, wages get cut, people hold off from buying, because tomorrow whatever it is, will be cheaper, demand falls, jobs go to the wall. Who would buy a house today (unless you are desperate) when it's going to be cheaper next week. Repeat that across the whole economy. The solution is usually to cut interest rates, taxes and increase public spending, but only if that does not increase the debt. Hard to see how that would not happen.