Re: there is never any motivation to practice monetary deflation
A few points about that:
1) Deflation (of money supply) requires
no action. It occurs naturally as productivity increases while the quantity of money and credit remains the same. The currency is worth more.
2) Deflation decreases (all) prices, more than they would have if the money and credit supply grew with higher productivity. Government uses smoke and mirrors to subvert this idea. By claiming
that rising prices in areas, such as (currently) the stock market, favored with high credit injections are the results of recovery, the public is convinced that inflation is good.
3) Debt is not treated kindly by deflation. This is a good thing because it should encourage savings while discouraging indebtedness. Since loans would be repaid with money that was worth more, banks would gain and the debtor would lose.
4) Fractional reserve banking profits obscenely from the debt of others. Since for every dollar they loan
, they only have 10¢ real money invested. They are not motivated to make careful investments by way of loans.
5) And finally, since credit is still promoted as a lifestyle, most of the public has no interest in sound money, savings, or any thing that would require them to discipline themselves. They will likely remain debt slaves as long as they have a ready supply of scapegoats on which to blame their ever-depreciating lifestyles.