The highest real GDP Growth in the US, Based on production data, seems to have taken place during the mostly deflationary years of 1880s and 1890s. It might have been as high as 15% a year for 2-4 years. In those years, inflation was more likely to cause depressions, or recessions, than deflation. People are totally ignorant when it comes to deflation because they have only known inflation.

Japan’s economic problems have nothing whatsoever to do with deflation. Ordinary Japanese are enjoying the blessings of deflation. Believe it or not, sustained deflation has made Japanese consumers true kings, as they get kingly choices, compared to 20 years ago and can afford to buy more things with lot less Yen. Deflation is the best thing that has happened to the Japanese merchants in terms of efficiency. Actually, they have learned a good thing, or two, from Americans. Yes, we Americans are very good, maybe too good!, at merchandising.

INFLATION = INEFFICIENCY, WASTE, DISHONESTY AND CORRUPTION.

Presently, we got everyone of the four in American politico-economic system in unhealthy quantities. Japan and Switzerland, as far as I know, have the lowest overall inflation since the end of the WW II. People and economic elite there are far trust-worthier than in America, or England, or India. It is time that we learned a few good things from others. In America, crime pays, and dishonesty pays even more, far more than in Japan, or Switzerland, as well as in many northern European countries. Rule of law, and not of men, you say?

It is the dishonesty that has most to do with inflation rather than the fiat money. Money, the medium of exchange, is basically based on trust. Nothing shows the naked dishonesty of a government in any country more than overt attempts at inflation. Had a German Central Banker said, before the founding of the ECB, what Bernanke in the US said in 2003, he might have been shot before he could be fired from his job. In America, such rogues get a promotion!

Helicopter Bernanke and Conundrum Greenspan are disgrace for central bankers. 2-4% deflation rate is the most conducive to an honest economy as well as prosperity! We had very aggressive and roughshod Robber Barons in the late 1800s, but we had a far more honest economy than today. Back then, gangsters where known to most as gangsters. Now, they are known as bankers, financiers and CEOs. Yes, sustained inflation has contributed greatly to the financial corruption wherever inflation is kept higher. Do you think that the stock option fraud would have worked just as well in a deflationary economy?! And how would the Federal Reserve Bank rob the savers under deflation?!! Yes, yes, the Fed needs the elbow-room to rob the savers.

Just imagine the wonders of 8%+ nominal growth and 4%+ deflation. That, and more, was done and part of that can still be done if we can get rid of the financial Crooks. Approximately, 5% of the US inflation rate is financial Crooks’ (or goondas’, in Hindi) Protection Money in disguise. It is pure financial gangstery, or goondagirdee. There is nothing that an American can do, that I know of, to get rid of the financial Crooks. Via the vote? LOL.

The first major economy that backs its currency with gold, and declares war on the scrooge of inflation, would draw capital from all over the world. Don’t be surprised if that is a Communist country. Smart money doesn’t give a darn about Communism or democracy (we know that already from how much smart money went to China versus India, don’t we?); only dumb people do.

Just remember, at least here in Southern California, inflation is a choice. I have made my choice, deflation, and there are few other people in other parts of the US who have made that choice too. If you don’t believe, you wouldn’t try and find out. And that is very un-American. I declared personal war on the scrooge of inflation and I am winning with comfort. Therefore, I can say: Go to hell, Bernanke and Greenspan. And you can say that too if you are determined to not let these Crooks have so much power over your economic life. Never forget, it is the people, more often than not, who give powers to their oppressors!

Lord, give me the oppressive taxation of King George, III, and deliver me from the thugry of Bernanke, Greenspan & Co. I know few Georges in America who would join me in this prayer.

Already enjoying the blessings of deflation, ahead of the times, a true contrarian, and an even truer American (only in the best sense of that term),

Jas