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<p>[QUOTE=&quot;Cloudsweeper99, post: 942637, member: 3011&quot;]Deflation has its own challenges, just like inflation.&nbsp; Deflation is bad for business and investors.&nbsp; If you have all of your life savings in coins [regular old pocket change], you might be okay.&nbsp; If it is in stocks, bonds, or money market funds, it is at risk.&nbsp; Delfation is frequently accompanied by massive defaults.&nbsp; Remember early 2009?&nbsp; Even &#039;A&#039; rated commercial paper could not be rolled over and the Feds stepped in to guarantee it.&nbsp; The reason why the dollar rises during deflation is because there aren&#039;t enough of them due to all of the defaults.&nbsp; It won&#039;t be pleasant.</p><p><br /></p><p>That&#039;s the &quot;bad deflation.&quot;&nbsp; The &quot;good deflation&quot; is what happens when business is good and the money supply is stable.&nbsp; Then, productivity gains tend to result in slowing decreasing price levels, and your money really is worth more.&nbsp; We don&#039;t have that kind.[/QUOTE]</p><p><br /></p>

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