Quote from: JarvisTechnology on June 27, 2015, 07:08:39 AM

Quote from: dblink on June 23, 2015, 05:47:17 AM

Quote from: Natalia_AnatolioPAMM on April 14, 2015, 07:16:14 PM

impossible to survive Tongue

Deflation generally occurs when the supply of goods rises faster than the supply of money, which is consistent with these factors, the supply of money goes down, the supply of other goods goes up, demand for money goes up and finally demand for other goods goes down.

Deflation of prices in a Bitcoin economy is often put forward as a major reason not to depend on such a currency, as it has many ups and down phases at current stage.

Deflation in supply money usually defined as a general drop in prices of goods and services.
All such inflation and deflation occur randomly,as it part of living. Grin

In a sound situation, a high degree of saving will lower the interest rate, and signal to entrepreneurs that more investing is needed. When new products arrive, some time afterwards, people have the money to spend.

The artificially low interest rate, which can only be brought down by creating new money and ever expanding debt, likewise signals to entrepreneurs to invest. But at the same time, low rates and inflation signals to consumers to spend more. When products are ready, nobody have the money to buy them. That is what we have now, a general oversupply and a general low demand, world wide. That is why the oil price is down.