Quote:

It was only discredited in so much as it was misapplied. Keynesian deficit spending is the nuclear option to be used only when a sudden contraction in the money supply occurs, and threatens to cause a deflationary spiral.



Good points. I'm finding myself cringing more often lately when I hear people talking about how great they think it is that certain things have gotten so "cheap" lately (due to the deflation we're already experiencing), and that it's supposed to be good news for all. Christ on a bike.

My mind always flashes to pictures of Indonesian coastline in the moments before their typhoon, where the tide had abruptly swept out and revealed bare wet sand all the way to the horizon - like a giant bath tub that had suddenly drained - and some people took it as their cue to run out and collect the flopping fish off the sand "can you believe all these fucking fish?!", wholly unaware the tide was mere moments from returning to re-occupy it's space, and with a vengeance.