Deflation in Canada

The 12-year period of credit disinflation appears to be over as the global economy is finally beginning to visibly deflate despite the best efforts of the central banks:

Canadian inflation went negative for the first time since the 2009 recession after the coronavirus lockdown put the brakes on the world economy.

Consumer prices dropped 0.2 per cent in April from the same month a year earlier, Statistics Canada reported Wednesday from Ottawa. That’s down from a 0.9 per cent annual rate in March and 2.2 per cent in February.

The report adds inflation to the list of economic indicators showing an historic impact from the coronavirus pandemic. Collapsing gasoline prices have pulled inflation lower over the past two months, but weak demand should keep inflation at extremely low levels for an extended period, and could even spur worries about deflation. That will keep pressure off the Bank of Canada to ease up on accommodation efforts any time soon.

From March, prices fell 0.7 per cent, matching the largest one-month drop since 2008.

Deflation is actually good for consumers and the real economy, since their money is worth more, but it is very bad for those who are dependent upon living off the debt of others. Which, of course, is why the banks and the financial elite have been desperately fighting to delay the deflation and credit crash that has been inevitable since 2008.

Debt jubilees are coming. Intellectuals of both the Left and the Right are already calling for them. In fact, one of the primary reasons behind the systemic overreaction to Corona-chan, as well as the constant goalpost-moving concerning the lockdowns, may be the cover provided for the ongoing economic crash.