A deflationary spiral would be far more painful than an inflationary one. Like it or not, the most prudent action the Fed could take at this moment is to hyper inflate while ushering in Bitcoin as the new global reserve currency.
As is typical, however, the Fed will try to have its cake (maintain global reserve status) and eat it too (monetize the debt). They will fail in this. Bitcoin will succeed.
I have to disagree. A deflationary spiral is exactly the mirror image to the inflationary. The only difference is that the inflation ends the money while the deflation buys central banks time.
I would rather have the FED inflate away the USD throughout decades, buying time for people to jump on the Bitcoin train, than see the whole ponzi crumble to pieces due to a sudden need of executing responsible monetary policy.
Wage deflation is bad. cpi deflation is good.
I see it the same way
I agree, deflation with so much debt in the system would lead to generalbankrupcies.
Inflation is a fiat debt jubilee
Case in point: France tried to raise the retirement age by 2 years, and the streets of Paris are burning as a result.
Austerity won’t work.
Better to pay all liabilities with devalued fiat then to not pay them and have mass riots.
Inflation is a more gradual, less painful way for the populace to awaken than austerity
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