If the pressure coocker is broken the pot doesn't go in pressure.

20/09/2014 10:26

The Director Scalfari says in his editorial that deflation is caused by a drop in demand and recession by a fall in supply, but it is clear that the two things are related if demand falls , companies have difficulties to sell their goods and for a some time shall happen.for effect of the race to stay in the market, prices will drop , but soon , when companies less competitive shall close ,it will achieve a recessionary phenomenon for which the supply will fall and prices will tend to grow so the companies to produce profits to invest in production and to supply goods and to produce growth.But if it does not fall the deflation despite the recessionary process and doen't restart the process expansive what does that mean ? Maybe it wants to say that the system homeostatic expansion - recession - expansion is broken, that there is a leak in the pressure cooker of the economic system ,that is a factor of alteration in the system.I invited the experts to re-read Malthus and his analysis of the relationship between population growth and economic growth to have an idea about the roots of the crisis but apparently this is a taboo unapproachable by any person who does not want to create a scandal.