Kevin Duffy on the role of deflation

Deflation is the market’s instinctive response to a particularly insidious strain of monetary inflation: one that leads to asset bubbles.  The artificial boom is seductive, pulling in the retail investor at the end.  As the bust does its all-important work of rediscovering prices, redirecting scarce capital to its best uses, and restoring economic health, hopefully some lessons will be learned.  Chief among them: the great stimulus experiments of 2008 and 2020 caused this train wreck.  The interventionists have done enough damage.  It is high-time they are swept into the dustbin of history.  Vive le laissez-faire!

~ Kevin Duffy, "Breaking Point: The interventionists lose control," The Coffee Can Portfolio, p. 9, June 15, 2022