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<p>[QUOTE=&quot;medoraman, post: 1595774, member: 26302&quot;]If you have deflation, it means every year prices go down. Therefor, if I buy a car for 1 million yen today, it will only cost me 900,000 yen in a few years. However, I have to PAY 1 million plus interest. Effectively, deflation is additional interest that must be paid. If a loan is nominally 4% interest, but deflation is running at 5%, the REAL interest I must pay is 9%. The worst part is governments ignore this, so I do not get to deduct as a business expense the 5% extra interest due to deflation I must pay, so it hits me even harder.</p><p><br /></p><p>I have lived through inflation in the 70&#039;s as well sir, I am just saying for an economy I would take that over a deflationary spiral overall. Yes, if I am retired I want deflation, but that is just my selfish self interest talking.[/QUOTE]</p><p><br /></p>

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