Here is a quote from an article written by Mr. Rockwell that I have mixed feelings about: “Deflation makes it “far more difficult to pay back existing loans.” It’s true that loans are paid back in dollars that are more valuable than the ones borrowed. But that is part of the risk one takes when dec…

I would think if money got more valuable over time it wouldn’t take as long to save up to buy a house outright. People haven’t always bought homes with mortgages.

possibly taken out of context? can you post a link to the full article. perhaps he was arguing how to get people to spend more money without having to inflate? Im pretty sure the mainstream Austrian thought is to ‘stop printing’ and stabilize, dont inflate or deflate. or perhaps he was just arguing…

Who in their right mind would pay 350% of the real value for a house, with $0 down and a ARM with a payment 2X their income after 5 years? It would encourage savings, regardless. This, to my understanding, is what Lew Rockwell encourages. It would also drive housing prices down to begin with, makin…

I apologize, I should have noted that the first sentence in the paragraph was a quote form someone else, and is what Mr. Rockwell is trying to argue in the rest of the paragraph. http://mises.org/daily/1241/ < — LINK

Why Deflation Isn’t Harmful | by Jörg Guido Hülsmann For more, see here . [Why Deflation Isn't Harmful | by Jörg Guido Hülsmann]

The inverse of your concern is revealing: Who will lend money for a 30 year mortgage if it will be paid back in dollars that are less valuable (as is with inflation)? Personally, I would say most Americans could afford to save up the capital for a house. The main reasons they do not are: they are…

Deflation problem

Economics Economics Questions

John_James September 17, 2012, 5:04pm 6

Why Deflation Isn’t Harmful | by Jörg Guido Hülsmann

For more, see here.

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Deflation problem

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