Hyperinflation or Deflation? Dramatic Fiscal Austerity Measures: "Deficit Terrorists" Strike in the UK -- The USA is Next

Last week, England’s new government said it would abandon the previous government’s  stimulus program and introduce the austerity measures required to pay down its estimated $1 trillion in debts.  That means cutting public spending, laying off workers, reducing consumption, and increasing unemployment and bankruptcies.  It also means shrinking the money supply, since virtually all “money” today originates as loans or debt.  Reducing the outstanding debt will reduce the amount of money available to pay workers and buy goods, precipitating depression and further economic pain.