deflation

A Deflationary Environment may be Just What America Needs

Thursday, January 15, 2009 by: Barbara L. Minton
Tags: deflation, health news, Natural News

eTrust Pro Certified

Delicious Pin It
(NaturalNews) Every crisis has a silver lining. For years we in the Western world have been taught that the absolute worst thing that could happen to an economy is deflation, a retrenchment in the value of goods and services. Yet deflation is actually just the other side of inflation, and necessary to correct the excesses caused by a long period of economic expansion and inflation. Nature has taught us that balance is the key to life, and when these teachings of the natural world are applied it is easy to see that deflation is the balance for inflation, just as yin is the balance for yang. Although it may initially have negative consequences for many people, deflation will cleanse financial excesses and restore the harmony that comes with balance.

Why people have been taught to avoid deflation at all costs

An economy that is shrinking means a job market that it also shrinking, resulting in job loss for many people and inability of young adults to find a place in the economy. Deflation is seen as creating a vicious circle of declining profits, business failure, bankruptcies, loan defaults and shrinking incomes. Deflation means less profit for corporations and a decline in the standard of living for almost everyone.

The common fears of deflation are based on the belief that the goal of everyone in life should be to accumulate an ever swelling abundance of material goods. It is a goal that is beneficial to corporate interests, but on an individual level it is a goal that has repeatedly failed to bring happiness.

Deflation will bring the liquidation of excessive debt burdens

For a long time Americans have been playing a very strange game. They have taken out mortgages and used credit cards to borrow every dollar they could get their hands on to put on the biggest display of material possessions possible, as though whoever was able to spend the most money was the winner. They finally discovered that no matter how much money they borrowed, they were still surrounded by people who had more stuff than they did. Once they accumulated a huge new house, luxury car and expensive wardrobe, they found they were just like everybody else who had borrowed to get all these things. Most people finally realized that no matter how much debt they took on, they could never be winners at the possession game, but by then it was too late. They were in debt up to their eyeballs.

As people stare in disbelief at their huge debt burdens, the future looks bleak. They are saddled with years of payments, years during which they can watch their high end appliances become outdated, their wardrobes go out of style, and their cars fall apart while they continue to make payments. They are watching the value of their big houses decline, and they shrink from the thought of paying for them another 25 or 30 years. The average American household appears to be facing a dismal future of debt service.

Deflation offers a way out of this debt quagmire. As debt becomes unmanageable new terms have to be negotiated. Lenders do not like this situation any better than anyone else, but they know they have to renegotiate or take the chance defaults will wipe out their investments. When new terms and amounts have been agreed upon, some of the crushing affect of debt burdens will be lifted. People will feel freed from their mistakes to some degree, and able to start over and look to a brighter future.

Deflation means the cost of living will be reduced

Prices are falling for many items needed in the course of daily living. Gas, energy, commodities in general, houses, cars, travel, apparel and more. This is the result of deflationary trends. If these trends continue, look for lower prices across the board. It is a great environment for those with savings because their savings will buy more than they ever anticipated. Seniors with fixed incomes will not have to watch their purchasing power erode every year as they did during the inflationary period.

Deflation will narrow the salary gap

The salary discrepancy between the top executives at most companies compared to the salaries of the average workers will begin to narrow as deflation forces these companies to no longer allow members of boards of directors to approve huge salaries for each other. This is going to give most people a huge psychological boost. They have known that all employees are vital to the functioning of the organization, not just the CEO. Prior to 1990 the average worker to CEO pay ratios were 1 to 100. By the year 2000 that ratio had swelled to 1 to 500, enough to make most workers feel disgruntled.

Americans will have to figure out a way to be competitive in world markets

Americans, once the leaders of the world in ingenuity and creativity will be forced to draw upon their resources again. As workers are no longer forced to accept the highest paying job they can find in order to service their debt, they may be free to find work that actually uses and reinforces their talents and abilities. Design and manufacture of products for world markets will again be part of American life as cottage industries give birth to the renewal of manufacturing in America.

As government stimulus is overwhelmed by deflationary forces, free market principals will again take hold. Prices will begin to reflect actual value and market conditions rather than bureaucratic manipulation.

People may drop the every man for himself philosophy that has so dominated the American outlook in recent times. As more people lose their jobs it will become apparent that people will have to help each other survive. This ability to work together for the greater good of all became the mode during the Great Depression and fostered an era of personal and group cooperation and sharing. Most households that were able kept extra food on hand to feed those in need. This cooperation led to victory gardens, grown to support troops during World War II and to make sure that all Americans had food. These gardens fostered cooperation among family members so absent from the American landscape today. Children were no longer pampered but worked beside their parents to insure the success of the projects. In the process they learned what it was like to work for the common good.

Gratitude may replace envy during a deflationary period

The forces of deflation will act as a leveling mechanism in American society. As people realize the actual economic and psychological costs of trying to achieve ego status and positive self-esteem by buying things, they will begin to abandon the attitude that more possessions is what it takes to achieve happiness. The new attitude will become one of appreciation for what one is left with after the forces of deflation have taken their toll. Resourcefulness and the realization that less is more may replace greed. When greed is no longer the dominant emotion, peace and freedom from stress will promote health and happiness even if there is economic hardship.

Eventually possessions may again have real meaning for their owners. During the period of envy, all people seemed to think about was getting another possession. Then when they got it, it had no meaning for them because they saw that someone else had even more new possessions. When greed is the major theme, no one is ever happy with anything. When gratitude becomes the theme, many people can be happy with almost nothing because what they do have is valued and cherished. Instead of having bulging closets full of clothes made in China that we are unable to relate to on any emotional level, we may have a few well chosen items that were made in America that we can wear frequently and with pride and gratitude.

Money will take on a new meaning

For several years money has meant only one thing in America, a means to get bigger and better material possessions. As such, money has been the source of insecurity for Americans. The search for ever more possessions has allowed people to mortgage their futures to the point where financial security remains elusive for as long as thirty years.

Yet in other periods of history and in other cultures money has meant a way to gain security. People have scrimped, saved and denied themselves material possessions to provide an emergency fund of money, the means to live through a period of hardship, or the means for a secure and cozy old age. For them money was a giant security blanket to fall back on. People believed they could see their way out of almost anything if they had money put aside.

Deflation will help Americans wake up to the fact that possessions actually rob them of security rather than provide it. In a time of deflation people are rewarded for saving money. They do not have to fear constantly rising prices that will erode the value of their savings. Lack of inflation means price stability, and deflation means price decline. In an environment of price stability or deflation, money saved this year will buy the same amount or more next near, not less. Deflation is a powerful force that may ignite a wave of savings like this country has not seen for several decades. The super low interest rates being paid to savers now reflect the perception that the money they save today will retain its value tomorrow.

Deflation will require Americans to again put people first

Deflation means that Americans will no longer be playing the possession game and using their possessions as weapons against each other. Once they stop defining themselves by their possessions, they will be free to define themselves by their ideas, values and beliefs. When they no longer need to impress each other by what they own, they can be impressive by who they are and what they can do. Families and communities may come together again instead of each person sitting alone as a consumer of the latest in electronic gadgetry. Conversation may become the norm again with more formats springing up for the open discussion of ideas and debate. If this happens, intellect and creativity will flourish.

When deflation and cooperation replace inflation and greed, people can stop thinking of entertainment as having people over to admire their possessions and start thinking of it as a chance be with people they care about to exchange genuine ideas, thoughts and tales of experiences. Yes, experience will be valued ahead of possessions in a deflationary time when people come together to share in the commentary of life.

When people are freed from their endless search for more money to buy more possessions they will be able to effectively parent their children again in an atmosphere of responsibility, cooperation and endeavor rather than out of indulgence and guilt. Children will learn to live emotionally healthy and productive lives rather than being mentally dependent well into adulthood.

Parents who do not spend every waking moment chasing possessions will have time to teach their children the manners and respect required to be a participant in adult life. When the barrier of possessions has been stripped away, we will again be able to regain our commonality with other human beings and approach each other as equals. When people stop being mindless consumers they will be able to devote themselves to insight and understanding, innovation and resourcefulness. When this state has been achieved, possessions will again become meaningful as things to value and appreciate, rather than things to devalue and throw away.

There is everywhere evidence that nature abhors excess. The material excess of the last twenty-five years is unnatural. When deflation requires a turning away from excess, people will need something to turn toward. The new experience may be reunion with nature and all things natural, including natural mental and physical health. People may again walk upon the earth and feel empowered by the simple fact of their existence. Their self-esteem may be renewed by a new economy in which cooperation and ability are the measures of success, and where everyone can achieve almost continuous positive feedback.



About the author

Barbara is a school psychologist, a published author in the area of personal finance, a breast cancer survivor using "alternative" treatments, a born existentialist, and a student of nature and all things natural.

Get breaking news alerts on GMOs, fluoride, superfoods, natural cures and more...
Join over four million monthly readers. Email privacy 100% protected. Unsubscribe at any time.


Have comments on this article? Post them here:

comments powered by Disqus

Take Action: Support NaturalNews.com

Email this article to a friend

Permalink to this article:

Reprinting this article: Non-commercial use OK, cite NaturalNews.com with clickable link.

Embed article link: (copy HTML code below):
Most Popular
Today | Week | Month | Year

See all Top Headlines...



GET SHOW DETAILS
+ a FREE GIFT

Now Available at ShopNaturalNews.com

O3 Essentials OraJuvenate™
A powerful, cleansing dental cream for maximum oral/dental health.
New Cancer Solutions
Over 3 hours of content covering today’s best cancer tests, how to kill cancer cells and the best diets and exercise routines.
Freeze-Dried 100% Organic Whole Corn
Our freeze-drying method preserves taste, texture and nutrients better than any other food preservation method ever invented.
Fenix TK35 Flashlight
Tough, waterproof, extremely bright and it’s touted to throw an 800+ lumen beam more than 1,000 feet into the night.
Inca Treasure Smoothie Pack
This pack of our four most popular superfoods from South America is the perfect combo pack for smoothie lovers.
Pink Himalayan Salt
This salt delivers significant levels of magnesium, zinc and selenium, with trace levels of dozens of other elements.
Pinhole Glasses - Aviator Style
Pinhole glasses are becoming famous for helping people improve their vision without the risks of laser surgery.
Oxy-Rich Facial Serum
O3 Essentials Jojoba Oxy-Rich Facial Serum is cellular nourishment for your skin. Helps smooth fine lines while enhancing tissue elasticity.
Freeze-Dried 100% Blackberry Halves
Our freeze-dried blackberry halves are grown in Serbia under strict organic standards.

Also on NaturalNews:

Health Ranger Videos
Activist music
CounterThink Cartoons
Food documentaries
FREE Special Reports
Podcasts
Colloidal Silver

Advertise with NaturalNews...

Support NaturalNews Sponsors:

Advertise with NaturalNews...

Most Popular Stories

Flu shot kills 19-year-old, but vaccine industry still has total immunity against lawsuits
Here's a nutty fact: Eating more tree nuts lowers the risk of all-cause death by up to 20 percent
Six important facts you're not being told about lost Malaysia Airlines Flight 370
Malaysia Airlines Flight 370 now clearly a government cover-up: All evidence contradicts official story
10 other companies that use the same Subway yoga mat chemical in their buns
BLM fracking racket exposed! Armed siege and cattle theft from Bundy ranch really about fracking leases
High-dose vitamin C injections shown to annihilate cancer
U.S. treating meat with ammonia, bleach and antibiotics to kill the '24-hour sickness'
USDA to allow U.S. to be overrun with contaminated chicken from China
Vaccine fraud exposed: Measles and mumps making a huge comeback because vaccines are designed to fail, say Merck virologists
Battle for humanity nearly lost: global food supply deliberately engineered to end life, not nourish it
Diet soda, aspartame linked to premature deaths in women

25 Amazing Facts About Food

This FREE downloadable report unveils a collection of astonishing and little-known facts about the food we eat very day. Click here to read it now...

 

Resveratrol and its Effects on Human Health and Longevity - Myth or Miracle.

Unlock the secrets of cellular health with the "miracle" nutrient Resveratrol Click here to read it now...

 

Nutrition Can Save America

FREE online report shows how we can save America through a nutrition health care revolution. "Eating healthy is patriotic!" Click here to read it now...

The Healing Power of Sunlight and Vitamin D

In this exclusive interview, Dr. Michael Holick reveals fascinating facts on how vitamin D is created and used in the human body to ward off chronic diseases like cancer, osteoporosis, mental disorders and more. Click here to read it now...

Vaccines: Get the Full Story

The International Medical Council on Vaccination has released, exclusively through NaturalNews.com, a groundbreaking document containing the signatures of physicians, brain surgeons and professors, all of which have signed on to a document stating that vaccines pose a significant risk of harm to the health of children. Click here to read it now...

Health Ranger Storable Organics

GMO-free, chemical-free foods and superfoods for long-term storage and preparedness. See selection at www.StorableOrganics.com



Recommended Resources On:

Natural News trends
Health Ranger news
Natural News GMOs
Mike Adams tracker
Natural News photos
Natural News Global
Natural News in focus
Natural News connect
Natural News shocking stories
Natural News radar
GMOs
Quackwatch
Vaccines
Health freedom
Dr. Paul Offit

This site is part of the Natural News Network © 2014 All Rights Reserved. Privacy | Terms All content posted on this site is commentary or opinion and is protected under Free Speech. Truth Publishing International, LTD. is not responsible for content written by contributing authors. The information on this site is provided for educational and entertainment purposes only. It is not intended as a substitute for professional advice of any kind. Truth Publishing assumes no responsibility for the use or misuse of this material. Your use of this website indicates your agreement to these terms and those published here. All trademarks, registered trademarks and servicemarks mentioned on this site are the property of their respective owners.

eTrust Pro Certified Android app on Google Play

Sign up for the FREE Natural News Email Newsletter

Receive breaking news on GMOs, vaccines, fluoride, radiation protection, natural cures, food safety alerts and interviews with the world's top experts on natural health and more.

Join over 7 million monthly readers of NaturalNews.com, the internet's No. 1 natural health news site. (Source: Alexa.com)

Your email address *

Please enter the code you see above*

No Thanks

Already have it and love it!

Natural News supports and helps fund these organizations:

* Required. Once you click submit, we will send you an email asking you to confirm your free registration. Your privacy is assured and your information is kept confidential. You may unsubscribe at anytime.