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Fake Drains - Why China Flooded - Episode #172
The China Show
The Effects of Deflation on Prices
Deflation means people don't want to spend their money Because they have no hope for the future. Deflation is when there's less money supply Government spending, consumer demand of business Investment all tanking. All four things Just start heading down the hill Roll and down the hill And it affects prices It makes prices lower But then you don't have enough profit to pay your stuff. Everything runs down You can't pay your rent So it's actually negative for a That's called producer price decline.
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