Page 184 - TrumpsEconEra_Flat

Chapter 8: Money - The Seeds of Destruction

THE DEMOGRAPHIC CLIFF
According to The Demographic Cliff: How to
Survive and Prosper During the Great Deflation of
2014-2019 by Harry Dent, demographics is the ultimate
indicator that allows us to see around corners, to predict
the most fundamental economic trends. Dent spends a
good part of his book arguing that the demographic cliff
has turned against the United States.
Dent argues that the next big crash will bring a
period of deflation and the demographics of the retiring
baby boomers and the smaller generation following will
reduce prices. The general price level will also fall
when the economic bubble bursts. We are in a bubble
brought about by too much debt, and as with all
bubbles, it will burst, causing unemployment and
falling prices.

Most people are not concerned about deflation
because they benefit from the lower prices, but
deflation effects business. Consequently, These events
will have an impact on markets as deflation leads to
private and public insolvency.

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