The vast majority on this planet have no cash, investments, or debts to pay off. Global central bank reflation efforts are putting intense upward pressure on commodities (as all the extra money piles into commodity speculation) which disproportionately harms the billions who eke out a living day to day.
Furthermore, deflation is a natural part of the business cycle, the inevitable effect of overcapacity and hence overproduction.
But if production slows down who gets the lions share of that now limited production? Those who are scraping by and are therefore less likely to get the goods and services from production or those who do have that cash and realize their opportunity. Would developing nations benefit as a whole in a deflationary period?
I was simply attempting to bring attention to some of positive aspects of deflation in the realm of commodity pricing such as food, heating oil, cheap consumer goods, etc.
I'm sorry I'm stopping on the first sentence of your second paragraph but the remainder of your point hinges on this. You state that this is part of some natural cycle. The entire history of human economics would show that economics is an evolving thing. Current policies are just a blip in the history of it. Basically I don't think there is a natural cyclical aspect to our economic shakeups.
Then you stand alone. The business cycle is as old as capitalism itself.
As for your third point - how do you resolve rampant inflation (which you've stated you feel is happening) with the greatest deflationary force in history which is just over a decade old?
Never said inflation was rampant. In fact, my first post explains away the apparent discrepancy (deflation in the things we want, like tvs you buy on Amazon, vs higher inflation in the things we need, like food, medicine, education, etc.) Taken together the inflation picture looks tame, but under the surface many scrape by as they seek out the necessities of life.
I don't think deflation is inherently evil. It does increase the buying power of cash, thereby making goods and services cheaper. You seem to be glossing over the negative aspects by only bringing up the positive side and not even addressing the negative. What would deflation do to our current capitalistic structure? And what longer affects would that have?
Deflation is absolutely devastating to the investor class, the owners of real estate, and it's positively lethal to the over leveraged and over extended. Forest fires are terrible, scary things too. They destroy homes and take lives. Nobody celebrates the destruction as it unfolds. But after time, benefits do emerge.
I seek a more balanced approach to the question of inflation/deflation as each brings with it a necessary set of positives and negatives.
