Bookstaber's discussion is pretty close to what What we are seeing and not so far off the mark. It would be interesting to put his hypothesis in a more general economic model. He, nevertheless, has pulled out two of the more fascinating influences operating within our modern economies. Power to him:
http://www.businessinsider.com/secular-deflation-2010-11
A similar model results in the deflation of the housing market which receives the benefit of over expansion of the money supply, but this leads to deflation as there is insufficient consumption demand for the second cycle of demand that results from too much money. The inflation of too much money can offset the deflation of technology providing the money supply growth is in balance for long term consumption capacity, normally seen as the long term income or permanent income as per Milton Friedman. This can explain why a well designed combination Keynesian, Schumpeterian and Friedman's models will work together but leave one out and none will work. All three together provide a reasonable framework of analysis as first suggested in the 1930's bynthe economist and mathematician, Professor Moore.
Will not time reveal the lasting importance of friends and mutual respect? Be kind to those who think well of you and those you know and try to add positive elements to your world. Promote peace in your heart and sunshine in the minds of those around you by your own good works. Elevate the level of discussion by thinking less of the issues and more of how you can reduce the tension of stress that arises with honest disagreement. Relax by breathing more deeply and consciously.
