The Deflation Collapse

“What should I talk about?” Ranell shoved his hands deep in his pockets and shook his head in frustration. “What good would it do for me to complain about a President of the United States who’s so obsessed with exacting revenge on his political opponents that he refuses to acknowledge that his ‘austerity’ measures are killing the business in this country?”

“So, you believe it’s the President’s fault?”

Ranell ground his teeth together, looking up into the sky like he was trying to find an answer there, a way to explain. He groaned. “Yes and no. Father, the whole world is collapsing. GDP for every major industrialized country has tanked. GML is a global freight operation, and demand for everything has fallen off a cliff. Prices for everything have dropped precipitously…”

“Lower prices are good, no?” Mendoza’s curiosity momentarily replaced his professional concern.

“Not if you still have to make debt payments on loans you took out when prices were at record highs!” Ranell retorted. He massaged his temples for a moment. “GML took out a major loan to finance a small fleet of airships. Now our cost to service the debt is too high based on the revenues we’re bringing in. We were betting on inflation, but instead we got deflation, and it’s so much worse! We exposed ourselves to economic danger, and now GML’s going to pay the price. Our shareholders have abandoned us. It’s a catastrophe.”

Mendoza furrowed his bushy eyebrows and clasped his hands behind his back as he walked. "A catastrophe… let’s talk about that.”

“I’ve lost everything,” Ranell repeated. “And all those people I was supposed to take care of will be impoverished.”