Your Economy (No Politics)

[SilverSurfer]

ChrisJP, they are paying off debts. Debt is money. Loans forclosed, debt paid down is money supply contraction, unless more loans are being made than paid off or defaulted on, we have deflation. Spending will not ever go away and there are always plenty of people with money to spend but in deflation they soon realize it makes sense to wait. A vicious cycle.