Courtesy of Mish.
When it comes to the inflation deflation debate it really would help if people would stop presenting complete falsehoods as facts. Here is a case in point:
Gary North writes Why the Deflationists’ Argument Is Wrong in Both Theory and Historical Fact
Aug. 3, 2012
An inflationist is someone who believes that price inflation is the result of two things: (1) monetary inflation and (2) central bank policy.
A deflationist is someone who believes that deflation is inevitable, despite (1) monetary inflation and (2) central bank policy.
No inflationist says that price inflation is inevitable. Every deflationist says that price deflation is inevitable.
Obvious Falsehoods
Gary North does not speak for any deflationist, nor does he speak for all the inflationists. He acts as if he does.
Sustained price deflation is certainly not inevitable, nor is price deflation inevitable in the short-term either.
Since I am a staunch deflationist, and since Gary North is aware of my writing, it appears he is purposely making preposterous straw-man arguments just to be able to shoot them down.
Discussion of Definitions
As I have pointed out many times, before there can be a debate at all, one has to agree to definitions.
My definition of inflation is an increase in money supply and credit with credit marked to market. Deflation is the opposite….
