Deflation? Bring it on!

Peter Schiff, a right wing money manager who’s on Kudlow’s show made an incredibly disingenuous conflation of two very different things today on “Call of the Wild”. He said “falling prices, we want falling prices. Asset values are too high” in response to Steve Liesman’s concern about deflation. His lie in the statement was to say that falling house (asset) prices is the same as a general fall in prices (e.g. the CPI). The former is a normal part of a popping of the bubble and is painful but necessary. The latter is deflation which makes downturns epically more painful by causing outstanding debts to grow in their real size which can push already overleveraged households and businesses over the edge and end up leading to a more severe recession or even depression. Another lie that Steve Liesman was only able to argue against briefly before the right-wing nuts Kudlow and Melissa Francis shouted him down & ended the segment.