> you don't see high interest rates because the banks are undermining the currency by buying their own debt (lowering their interest rates).
True - or at least, it was true. Currently the Fed is not buying additional debt. The amount that they hold might distort the market, but at least they aren't adding any additional distortion to it.
> not sure what the rest of your post is addressing. i'm familiar with deflation.
It's addressing the term "debase". If a trillion dollars evaporated, creating a new trillion dollars isn't debasing the currency, it's restoring the status quo ante.
True - or at least, it was true. Currently the Fed is not buying additional debt. The amount that they hold might distort the market, but at least they aren't adding any additional distortion to it.
> not sure what the rest of your post is addressing. i'm familiar with deflation.
It's addressing the term "debase". If a trillion dollars evaporated, creating a new trillion dollars isn't debasing the currency, it's restoring the status quo ante.