Reaction to World Markets (Coronavirus/Bubble)
The reaction of the world markets after this virus and a record high American stock index is hilarious. Stimulus is the last thing you need. Lower prices benefit savers. Deflation is good, especially in this digitally connected world where cost changes down supply chain are instant.
Deflation means a decrease in the money supply. Inflation means an increase in the money supply.
With deflation prices go down. With inflation, prices go up.
As cost is transferred down the supply chain, market actors change their balance sheets when prices change. Costs are being disrupted in America since 1913. Also the income tax that same year. The year the Federal Reserve Act was passed.
We need to hedge ourselves against Paper money valves by transacting and selling paper bank notes and digital bank notes for Cryptocurrency. What I believe is the solution.
Be careful, invest smart!