回复：classic case - money velocity slowdown,

higher unemployment rate,
deep recession,
assets devaluation,
rapid sell-off,
credit crunch – both to consumers and producers,
more personal and corporate bankruptcy,
… … and more,

contraction of demand, then supply,
contraction of real GDP,

It’s a positive feedback, triggered by rapid deleveraging and devaluation.
It’s a spiral called “deflation.”

What more do you not understand? Good ol’ Heaven bless us.

所有跟帖： 

• you still did not give out the definition -大猪头- ♂ (255 bytes) () 10/27/2008 postreply 13:45:03

• 回复：抬杠是吧？ -燕王- ♂ (68 bytes) () 10/27/2008 postreply 15:03:17

• 都自己称王了, 还羞答答不回答那么简单的问题. -大猪头- ♂ (68 bytes) () 10/27/2008 postreply 15:23:16

• I found this discussion very informative, and 大猪头 -NCNB- ♂ (12 bytes) () 10/27/2008 postreply 15:48:16

• 回复：we all love him -燕王- ♂ (0 bytes) () 10/27/2008 postreply 16:00:04