Well, howdy, they're going to know people, Litzboo again.

So today we're going to talk about deflation.

Deflation spirals, richest drag stories.

Most people know what inflation is. That's the price of everything going up. Your

purchasing power gets weaker. As a consumer, you're used to that. That's typically what's occurring in the United States.

Deflation is the opposite. Prices are going down. Your purchasing power is getting stronger.

And that sounds like a good thing and it is in the

short term and when I say prices I don't just mean like on single items

I'm talking about something called the consumer price index.

Picture it like an average of the cost of almost everything.

So your purchasing powers is getting stronger.

That sounds good, and it is for a limited time.

However, if a deflationary period is prolonged,

you can enter something called a deflation spiral.

Prices go down because demand is less.

So the company is selling less of their product,

so they lower prices to try to entice buyers. If buyers don't bite,

then the company is selling less of their products at a lower price. If it's less of their products at a lower price,

they have less money coming in. If they have less money coming in, short term, they can weather

it. Long term, they still have the same liabilities, they still have the same debt.

They still have the same stuff they have to pay.

If they can't do it by getting revenue and having money coming in,

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