The inflation prophets were completely wrong in 2020. Due to historical injections of liquidity, the conservative current forecast unprecedented inflation. As in the story of Peter and the Wolf, we hear desperate screams every day: inflation! But the echo of the mountains answered: Deflation! In particular, libertarian bitcoiners, who forever criticize the Federal Reserve and the dollar, are part of this Pedritos chorus. Some even shouted “hyperinflation” until the end of this year. Deflation remains the problem, however. Will the wolf arrive in 2021?
Some seem to want the wolf to come just to say they were right. Something that I find extremely pathetic. Of all the problems in today’s economy, one problem is selected that does not exist. In the worst deflationary crisis in recent history, the inflation problem is chosen as the flag. The fall in demand has done a lot of damage. The small business has suffered enough. The income has fallen. And unemployment has risen. The citizen feels the pain of the crisis. We’re not all Jeff Bezos or Elon Musk. Monetary and fiscal incentives are necessary to increase demand. Hence income. Hence employment.