The current deflationary forces are powerful and will likely cause confusion in the market, affecting the velocity of money, which is the rate at which money circulates in the economy.

Good deflation is driven by innovation, while bad deflation is linked to disintermediation and disruption of traditional industries, putting many companies at risk.

Lowering interest rates could potentially lead to inflation; however, technology, particularly AI, is deflationary and may allow for interest rate reductions without triggering significant inflation.

During the 2008-2009 financial crisis, the velocity of money slowed down as people became risk-averse, which prevented monetary easing from igniting inflation.

The market may be leading the Fed, suggesting that the economy is strong enough to warrant a reduction in quantitative easing soon.

Inflation may not go away easily, and spending is inherently inflationary, especially if not directed towards productive investments.

America's economic challenges stem not just from debt but increasingly from inflation, which is exacerbated by tariffs and the return of dollars from abroad, leading to rising prices for goods.

Technological innovation is driving good deflation, which reduces costs and increases productivity, contrasting with bad deflationary pressures. In the electric vehicle space, the deflation rate is 28% for every cumulative doubling in the number of units produced, and we're currently at 2.2 million units of electric vehicles.

To resolve the long-term fiscal situation, the only way is through faster growth, not inflation, which could lead to hyperinflation like in 1930s Germany. If you grow faster than your economy can catch up, you can pay down debt as you grow, which is why there's a push for a higher rate of growth.