This is a quote from JÖRG GUIDO HÜLSMANN, dated just last month, addressing the fears of deflation. It's from one of his essays you can get for free here.
There are also pages and pages of full length books on Austrian Economics, political economy, morality and especially our current financial mess, all of which can be downloaded free of charge.
"To raise these questions is to answer them. The crisis did not hit us despite the presence of our monetary and financial authorities. It hit us because of them.
Then there is the fear factor. If we follow a hands off policy, the majority of experts tell us, the banking industry, the financial markets, and much of the rest of the economy will be wiped out in a bottomless deflationary spiral.
The present essay argues that this is a half-truth. It is true that without further government intervention there would be a deflationary spiral. It is not true that this spiral would be bottomless and wipe out the economy. It would not be a mortal threat to the lives and the welfare of the general population. It destroys essentially those companies and industries that live a parasitic existence at the expense of the rest of the economy, and which owe their existence to our present fiat money system. Even in the short run, therefore, deflation reduces our real incomes only within rather narrow limits. And it will clear the ground for very substantial growth rates in the medium and long run.
We should not be afraid of deflation. We should love it as much as our liberties."
JÖRG GUIDO HÜLSMANN
Angers, France October 2008
In addition, if you're interested in the bailout and its ramifications, which are getting more ridiculous every day, you can check out their “Bailout Reader” blog. It has a huge pool of information about causes, effects, and best of all, what can be done to remedy our current financial situation.
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