Source img: https: //es.wikipedia.org/wiki/Deflaci%C3%B3n
Deflation is the fall in prices, originated in a scenario where demand dies.
-But it's good that prices drop! -You can shout someone. Not much less. Nobody gives anything away for free, and if prices drop, it is because nobody has to buy. Deflation is a vicious cycle of bankrupt businesses and companies destroying jobs.
Deflation is a vortex that leads you directly to unemployment.
Does deflation exist in our world? It is everywhere: the last crises we have experienced in the world have originated from it. To beat it, central bankers launch stimulus packages and packages, but these are often insufficient.
Deflationary inertia can with monetary injections.
By causing unemployment, deflation is very-but very-dangerous to the social order, so the captains in command of the ship try to strangle it anyway. Typically, they subsidize and inject as much money as they can.
The crisis of 1929 was a deflationary crisis, with Roosvelt stimulating the economy and intervening as much as he could.
Some say it was damaging and others say it saved their economy.
What will happen this time?
Today the world has a few differences from 1929 and the 2008 crisis: in 1929, gold was still present in the economy, tying the hands of politicians eager to degrade the currency; in 2008, gold had already been sent for a ride, but the nations of the world still did not have current debt levels.
Today we are tied hand and foot: the debt is a concrete block in the feet that prevents swimming towards recovery; central bankers print and print money and nothing can be solved.
Except for the erosion of the currency.
The current deflationary crisis will only be overcome by killing the current system and building a new one. All those who have placed their trust in the institutions of the current order will see how their wealth is transferred to those who bet on the new world.