Can Inflation lead to deflation if people change their purchasing behavior?

For example all this quantitative easing and direct bailouts in conjunction with national inflation ranging from 2-4% in the west is really making it hard to plan for the future. The Oslo stock exchange is almost directly tied in with the American ones which is why the media is loving it every time the federal reserve decides to start printing money keeping afloat all these crazy financial assets debt packages that are being sent back and forth.

I.e in Norway the housing market is being kept artificially high through regulations particularly environmental regulations and city prohibitions restricting real estate development, the few permits that are given is being used to built luxury apartments or houses with over 50-100% above the median market price.

All this is causing many young people to continue to either rent houses/apartment or continue to live with their parents, take also into consideration the rising unemployment rate among youths 16-35 is much higher that it is has been in decades, if you takes out all the fake variables such as "people receiving benefits count as working" the unemployment rate in Europe among youths is 20-30%.

How can the younger generation purchase the older generations assets and keep up with the inflationary prices that come as a result of the older generation increased purchasing power as they increase their capital lowers they debt allowing them to take more credit to buy more assets further driving up the prices whereas the younger generations capital is getting lower and lower?

Will all this inflation then cause a deflation as younger generations will change their purchasing behavior to be so different from their parents? You got all these kids on reality shows these days that try to get instant asset parity with the older generations by taking on immense credit debt ruining them for life which shows the economical ignorance and irresponsible childishness of the new twenty to thirty year old generations.

Bah where is Milton Friedman when you need him?

It has to lead to deflation, ultimately.

For inflationary monetary policy kicks off processes which ignite asset bubbles, if the dose of inflation is sustained and significant. Price inflation follows and paper profits accumulate.

Capital values increases and the new margins induce expansions. The bubble grows to maturity and reaches its apex.

But the end result of all bubbles is a deflationary correction.

All QE is doing is putting that correction off and ensuring that it will be deeper than necessary.

Quote from: TowardLiberty on July 08, 2014, 04:07:31 PM
It has to lead to deflation, ultimately.

For inflationary monetary policy kicks off processes which ignite asset bubbles, if the dose of inflation is sustained and significant. Price inflation follows and paper profits accumulate.

Capital values increases and the new margins induce expansions. The bubble grows to maturity and reaches its apex.

But the end result of all bubbles is a deflationary correction.

All QE is doing is putting that correction off and ensuring that it will be deeper than necessary.

In all my years TowardLiberty, that all any quick fix has done.

Quote from: walkstall on July 08, 2014, 04:21:52 PM
In all my years TowardLiberty, that all any quick fix has done.

Yep.

And given the nature of the institutions, ie the FED and its incestuous relationship with the treasury, we should not expect anything more.

For the "adult" solution would wipe away the corporate privilege that our banksters and their associated firms enjoy.