Saving is a dirty word

Even though the Fed is inflating at the rate of 800% it has been sitting in the banks rather than moving into the economy. So it feels deflationary. For now.

Should We Worry About Deflation?
Daily Article by Doug French

....Yes, the current economics brain trust is worried that consumers will collectively show the good sense to delay purchases, pay down debt, and increase their savings. After all, this liquidation of malinvestments will likely take a while. The prudent thing to do in times of uncertainty is not to ramp up debt and spend money you don't have.

But now, all of a sudden, "saving" is a dirty word. According to Evans-Pritchard, savings "also redistributes wealth—the wrong way. Savings appreciate, which is nice for the 'rentiers' with capital. The effect is a large transfer of income from working people with mortgages to bondholders."

Of course sounder-thinking economists don't see deflation as evil, as Jörg Guido Hülsmann points out in his just-published Deflation & Liberty: "it fulfills the very important social function of cleansing the economy and the body politic from all sorts of parasites that have thrived on the previous inflation.".....

....While central bankers furiously try to reinflate, cheered on by the mainstream financial media, monetary authorities should deflate the money supply, pulling in their horns as consumers are doing. Deflation is a "great liberating force," writes Hülsmann, "because it destroys the economic basis of the social engineers, spin doctors, and brain washers."....