Just as we are getting notice that consumer prices are falling by the most they have ever fallen in 56 years, Econo-Girl is noticing that micro miniskirts are back!
A few posts ago, Econo-Girl posited a few thoughts about deflation. Usually deflation is bad. I mean really bad. It generally means that no one has enough money to buy stuff, so in order to sell anything at all, retailers have to drop prices. It's what's been happening in Japan this past decade and they are only now pulling out of it.
This is why Econo-Girl is not predicting doom with deflation: skirt hemlines are going up. Yes, that's it. Nothing else. In fact, it is underwear-peeking time, like in the late '90s.
Some of you may not take comfort in that comparison. Econo-Girl can see why. But for the immediate and short term, there will be no economic collapse. You heard it here first.