I saw many articles about deflation in Europe, and the same thing always, it's just propaganda. The central banks are now going out of their way with the lies they put it, they even exceeded themselves in all those lies.
So what i`m talking about? It's all those mainstream news that say that there is deflation in Europe. They lie or they are idiots.
The premise is simple:
1) QE money has been lent out to non productive companies, a.k.a companies that shouldn't exist in normal conditions, most of those companies are insolvent, and only the constant loans and cheap debt keeps them out of bankruptcy. These "zombie companies" create shitty products and services that obviously nobody wants, otherwise they would be profitable, however since their cost is easy to finance with infinite debt, they flood the markets with it. So we got shitty products and services flooding the market, at an ever decreasing price.
2) Ok so far so good. Supply is every increasing, but demand doesnt. Demand is frozen, as people have less and less money, or in best case scenario they have the same income, so consumption declines or stays constany while supply is growing. Now because of this, all prices go down, except the ones that are directly pumped by qe money (stock market, bond market), all other markets are going down in price.
Now the question is, is this deflation? I don't think so, only an amateur would say this (which we have plenty of "economists" on TV saying it)
Actually since, wages go down too, infact, they go down even faster, thus the purchasing power of the consumer goes down. That is inflation my friends, disguised as deflation, because the price goes down, but demand goes down faster than price (unhonest price discovery and artificial pricing).
Thus at the end of the day, the consumer has less money, and relative to his wallet, the price goes up actually. The absolute price can go down, but the relative price to his wallet is going up.
Is it that hard to understand, seriously? Those idiot presstitutes and their idiot "experts" can't even understand this what a 5 year old can understand?
Now after they hijack the "deflation" word lemme explain what deflation really is: product & service price goes down and demand goes up. That is deflation.
