How is this bad news? Isn’t this good news for cashed strapped consumers?
Zero Hedge is a website that only looks at negative news and finds a way thus to make all news look negative. It’s entertaining, and a great way to miss out on 8000 points of Dow Jones upside over the past 5 years.
Yes. But, (I think) the government has an annual goal of about 2% inflation.
Deflation is bad for cash strapped consumers because it causes a rise in interest rates. If interest rates rise too quickly the consumer gets stuck in an endless cycle of paying interest and is not able to make new purchases because the cash flow is too slow.
http://www.businessinsider.com/why-deflation-is-a-bad-thing-2013-11