Inflation and deflation: The Japanese deflation...

Inflation and deflation: The Japanese deflation scare

http://www.dailyreckoning.co.uk/article/23112005.html

(An excerpt from the story above)

Consider the greatest fabrication, the Japanese "deflation" scare.

For years now, we have been told repeatedly that the root cause of Japan's economic problems is deflation. We have been forced into thinking that deflation is the culprit. Allow me to share a secret - the central banks want you to believe that deflation is a total disaster so that they can freely print more money, thereby creating inflation. After all, who benefits from the monetisation of the economy?

Despite all the brainwashing, close inspection reveals that Japan never really had any deflation! The truth is that throughout the past 15 years, Japan's money supply has continued to grow (inflation). Japan has witnessed inflation, and not deflation, since 1980. Sure, Japanese asset prices have fallen since 1990, but the cause is not deflation, as advertised by the establishment. In fact, a sharp rise in interest-rates was the trigger, which caused the Japanese stock and property bubbles to burst.