On 21 Oct 2014
Challenge to Keynesians "Prove Rising Prices Provide an Overall Economic Benefi,
You are right I have not read anything by Keynes, but de facto his philosophy has been conflated with inflation. Mainly as a tool to politicians.
If you have never read anything then how do you know what his philosophy was? You believe what politicians tell you? That explains a lot.
This is not true, just the opposite. If the value of the money goes down the rent goes down. In which case if you are leveraged you have a problem which is why the Fed wants to keep inflation going. In the early 30s houses had record lows. Deflation transfers wealth back to the proletariat/bourgeoisie.
When the only tool you have is a hammer everything sure looks like a nail. Not all debt is housing. The phrase was not renter it was rentier which he uses to refer to business and banks. He wasn't talking about housing. There is much more debt in day to day business operations than in housing. There is 11 trillion in mortgage debt out of 59 trillion total debt in the US. Keynes was talking about the operations of business which entails huge amounts of borrowing,basically grinding to a halt. Like the great depression.
Yup Rothbard had it right. If you are leveraged deflation is going to be hard on you. In reality this is what happened in 2008 the banks that were bailed out had malinvested when the adjustment was made almost a trillion would have been marked to market to zero value. That is big time deflation.
You still don't understand the concept. It wouldn't be deflation, it would be a very big loss. Even if the banks were very deservedly allowed to go bankrupt it still wouldn't be deflation. If it spread to the entire economy, not just housing, it would be deflation. Deflation is a systemic economy wide phenomena, not a loss in a single sector.
Rothbard was just plain wrong, mises even says so. Maybe you should actually read the ariticle, it's from mises.org.