Post
Topic
Board Economics
Re: Is deflation truly that bad for an economy?
by
tee-rex
on 29/03/2015, 18:31:10 UTC
Dinofelus is talking BS that has nothing to w real world.

Its just cashflow.  Dont need to make it sound conplicated

Yes, it is cashflow.  Now tell me, is cash flow free ?
If you immobilise (I called it "freeze") money in raw materials, machines and other things for a year, do you think that that is for free ? 

Are you really that dumb? Your money "frozen" in raw materials (from which you make goods that you later sell) earns you revenue. And as long as it is above inflation, you are still making profits by any means. By the way, your "risk free interest rate" is actually below inflation. For example, inflation in the US was 1.6% for 2014, while 1 yr US treasury bonds yielded only about 0.25% the same year, so you are obviously dancing upon nothing...