Quote from: tee-rex on March 29, 2015, 07:23:21 PM

Quote from: dinofelis on March 29, 2015, 07:00:04 PM

Quote from: tee-rex on March 29, 2015, 06:31:10 PM

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.

So, for you, if you need for $ 10 000 000 of material during a year, or you only need $1000 of material during a year, if in the end you sell for $200 more than the expenses you did a year before, you made a benefice of $200 ?

As I told you, good luck with your business

It just means that one business is less profitable than another, that's all. As long as profit earned is above inflation (mind this), the business is sustainable in the long run. Which will never be the case if it continuously suffers losses due to deflation, whatever interest rates might then be. I don't really understand why you are trying to argue against this simple fact.

Yes yes yes! Dont know why nobody gets this. Most business depend on credit in some fashion. So a even a steady deflation rate will discourage borrowing which in turn discourage activity.

Deflation is bad for everybody. Inlflation advantages those with capital but tolerable for most. Inflation harms those without access to credit

It doesnt matter if things are cheaper in the long run. What matters is the economic machine keeps running