At the heart of the problem lies the loss of money equivalence of credit instruments previously seen as risk free. As 'moneyness' is lost, the effective money supply contracts, and does so very rapidly. This is deflation by definition.
Demand will evaporate, not because people do not have wants, but because they will lack the purchasing power to turn those wants and needs into consumption. Demand is not what we want, but what we can pay for.
Nicole Foss
Read About: Money and The Kipawa River, Whitewater Ontario,Les amis de la rivière Kipawa,The Proposed Tabaret River diversion project, Northern Ontario Liquid Adventurers,Canadian Rivers Network The viewpoints and opinions expressed here are those of the author and are not necessarily those of Whitewater Ontario or Les Amis de la Riviere Kipawa. Those groups did not vet these comments and would not likely endorse the views expressed here or the manner in which they have been expressed.
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