It is the recession that caused deflation, not the other way around

[johnyj]

If you look at most of the recession in history, first comes monetary expansion, then comes asset/stock bubble, it shifted wealth from majority of people to a few elite. And when the bubble bursts, majority of people incurred a huge loss, then the consumption of the whole society will dive, then there will be deflation

So, the damage to economy is already done when majority of people has signed their contract and sold their future for a house that should not worth that much. However, blaming the recession to deflation gives banks one more chance to rob during a price down fall, where they could print lots of money to buy those foreclosure houses at the cost of nothing

So banks not only successfully sold a cheap house expensively near asset bubble's high and they even bought it back using nothing. They drive this scheme when people are getting richer, to make sure majority of people are poor and working hard

[V for Varoufakis]

No, the deflation creates recession.

[twiifm]

IMO, Minsky has the best theory on financial crisis.  And its nothing like what OP describes

[johnyj]

This is no longer in question by any remotely serious economist.

It was settled long ago.

Deflation destroys an economy efficiently, but yes, recessions increase the demand for money, and if one wants to completely absolve monetary issuers from their incompetence, recession could be blamed for deflation.

Luckily for the locals now trading MØ for their products will never suffer this plight because The Ideal Reserve's dynamic supply management that produces continual price stability, never a deflation.

Besides, deflation is not BTC's problem, inflation is since 2014's rate was something like 300%.  If the worst scoundrels are the Fed for 2% and Venezuela for 60% then BTC is a crime almost on Zimbabwe's level.

I borrow Buffet's word: “If you've been playing poker for half an hour and you still don't know who the patsy is, you're the patsy.”

Same here, if you don't understand who created financial crisis and who gained from all this drama, then you are the victim of their brainwash

Those economists, they have never owned one vault of gold, and they have never issued one piece of dollar, so they definitely don't understand all the gains and losses involved in all these schemes, I'd rather believe central banker John Law's word over these observers and researchers