Deflation and inflation

Real consequences of any inflation:

* Too much money – too much debt accordance to
* Too much production capacity
* Too much priceless expectant jobs

The deflationary process therefore consists of:

* Destruction of money has become uncollectible receivables, bad debts than by creditors surrender.
* Reduction of production capacity has become useless by plant closures and business failures
* Destruction of unprofitable jobs

Deflation is therefore the economic crisis with too many bankruptcies, unemployment and with widespread financial collapse, also known as depression.

Each deflation starts – at first almost unnoticed – even in the midst of inflation. Yet prices are rising, yet grow the debt. The number of bankruptcies is increasing, unemployment remains. Still, however, prices rise, albeit less Strengthens, one speaks of the first successes in achieving stability, and they fought bravely inflation as the No. 1 enemy, but even more wrong with the media.

And then comes the turn. The prices are stable, the growth goes to zero, demand is stagnant, deflation gets the upper hand. They surpassed inflation, it is becoming more and the economy. Consumption stagnated more: some do not buy more but can not buy.

Deflation is visible. The inflationary spiral has been reversed. It becomes a deflation spiral.