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But they can also introduce another kind of cycle: a deflationary spiral.
The Great Depression was in part a deflationary spiral, solved only by the outbreak of World War II when the government supercharged spending and employment.
And that deflationary mind state stayed in Japan for the last 30 years.
And that deflationary mindset stayed in Japan for the last 30 years.
On the one side, it might actually turn into Japan 2.0 and put yourself in a deflationary environment.
On the one side, it might actually turn into Japan 2.0 and put yourself in a deflationary environment.
Japan has long suffered from deflationary pressures, pushing the central bank to take aggressive stimulus measures in recent years.
Japan has long suffered from deflationary pressures,... pushing the central bank to
The entire economy went into a deflationary environment.
The entire economy went into a deflationary environment.
And the second one, which is related to it, is that it is deflationary.
And the second one, which is related to it, is that it is deflationary.
This deflationary spiral also means high unemployment, high prices for necessities, and hard times.
In a deflationary scenario, the money from bailouts and money printing mostly goes straight into paying down debts, which is why our economies have only barely recovered since 2008.
So we think inflation is going to surprise on the low side of expectations for those reasons and because innovation is inherently deflationary.
And because innovation is inherently deflationary and our five innovation platforms are all driving different kinds of deflation good deflation which will cause unit growth but deflation nonetheless.
And when there is a recession in a country like China, it can turn like what happened in Japan, where people actually stop spending money, and that can create a deflationary environment where that recession is going to persist not just for a couple of months but literally for a couple of years.
and that can create a deflationary environment where that recession is going to persist not just for a couple of months, but
Because the deflationary mindset is much more dangerous than the inflationary mindset.
But with this trade war, the GDP growth could actually be much lower than that, they can go to 2%, 1% or maybe 0% and if the bubble bursts, it could actually turn the entire situation into a deflationary mindset.